The feasibility of applying bankruptcy law to credit institutions

Abstract

Bankruptcy of credit institutions is one of highlights of the Bankruptcy Law 2014, which officially took effect in January 1, 2015. This is an issue of special interest to the citizens and enterprises because this is the first time the Bankruptcy Law 2014 sets aside a whole chapter to define the settlement procedure of bankruptcy for credit institutions and there also has not been a single bankruptcy of a credit institution in Vietnam, despite the fact that it was mentioned in the Bankruptcy Law 2004. The key questions raised regarding the bankruptcy of credit institutions are whether the provisions in the Bankruptcy Law 2014 are a forward step and whether they are feasible in practice. To answer the above question, this article will analyse some new provisions of the Bankruptcy Law 2014 as well as the feasibility of applying these provisions in practice.