The correction in bank stocks—the market’s largest-cap group—has dealt a significant blow to the broader market, especially as it coincides with the pullback of key pillar stocks that had fueled the recent sharp rally. Pressure persists despite good news Breakthrough measures for addressing bad debt, previously introduced under Resolution 42/2017/QH14, are expected to be codified in the revised Law on Credit Institutions, following broad consensus among National Assembly deputies. The changes would give lenders clear legal authority to seize collateral when borrowers default. Analysts say the additional regulations will improve the efficiency of bad debt resolution by accelerating debt recovery while reducing credit costs and legal risks for banks. This is especially important as bad debt continues to mount in the banking sector, particularly after the expiration of Circular 02/2023/TT-NHNN—which allowed debt restructuring for Covid-19-affected customers—in early 2025. This is not the only positive development for the banking sector. Earlier, Decree 69/2025/ND-CP—which took effect on May 19—revised the foreign ownership cap for banks undergoing compulsory transfers. Under the new regulation, total foreign ownership may exceed 30% but must stay below 49% of a bank’s charter capital, except in cases where the State holds a majority stake of over 50%. This […]