Banks hiding bad debts to face inspection By Nguyen Hien. dtinews.vn Banks which try to hide their bad debts and do not want to sell the debts will face inspections by the State Bank of Vietnam (SBV).   Banks hiding bad debts to face the State Bank of Vietnam's inspection The measure is included a plan issued by the prime minister to mitigate bad debts in the banking sector. According to the plan, the State Bank of Vietnam, the Ministry of Finance, the Ministry of Construction, the Ministry of Justice and the Ministry of Planning and Investment will co-ordinate efforts to resolve the problem. The SBV will join with the ministries and city and provincial people’s committees to carry out measures to deal with the bad debts. The SBV will inspect and conduct compulsory audits or suspend some activities for banks which try to hide their bad debts and do not conform to the SBV’s solutions on the settlement of bad debts. These banks will also face restrictions on paying dividends and assets and share transfers. The SVB will also request an increase the charter capital of banks found to have hidden their bad debts and will also decide a credit growth limit to ensure the safety of the entire banking system. Under the project, the Ministry of Finance and the SBV will co-operate with agencies to work out a mechanism and plan on dealing with bad debts of the Vietnam Development banks and state-owned enterprises for submission to the prime minister this year. In early March, the government approved a decree to establish Vietnam Asset Management Company (VAMC) which will go into operation in 2013. VAMC is expected to solve between VND40,000 (USD1.9 billion) and VND70,000 trillion (USD3.33 billion) in bad debts this year, said the State Bank of Vietnam Governor Nguyen Van Binh.