VietNamNet Bridge – As of September, bad debt in the banking system had dropped to 2.9%, a steep fall from 17.43% recorded in the same month in 2012, according to a Government report sent to the National Assembly (NA). Nguyen Van Binh, governor of the State Bank of Vietnam (SBV), said at a NA meeting on September 29, 2014 that total bad debt was estimated at VND500 trillion (US$22.4 billion) but he did not unveil the record date. However, the Government admitted in the report that bad debt has not been settled thoroughly. Commercial banks are required to set aside a lot of money for risk provisions including bad debts sold to Vietnam Asset Management Company (VAMC), and this has affected the operations of banks and State budget collections. According to another report presented by Nguyen Van Giau, chairman of the NA Economic Committee, bad debt settlements have been encouraging and the number of ailing banks has dropped. But experts said though the economy … [Read more...] about Gov’t: Bad debt ratio falls to 2.9%
VietNamNet Bridge - VCB Securities believes that the bad-debt ratio of the national economy may be as high as 11.02 percent. The State Bank (SBV) reported that by the end of November 2015, the NPL ratio of the banking system had fallen to 2.72 percent from 3.25 percent reported earlier last year. The NPL reduction came as commercial banks accelerated the provisioning against risks and pushed up the sale of bad debt to the Vietnam Asset Management Company (VAMC). The total NPL in commercial banks’ balance sheets was reportedly at VND135.872 trillion by the end of September 2015. However, VCBS has estimated that the bad-debt ratio might have reached 11.02 percent ,which includes reported non-performing loans (NPL), bad debt kept at VAMC, and debt which is likely to turn into bad debt after Decision No 780 on debt classification expired on April 1, 2015. Under Circular 02 which was applied after the decision was no longer valid, commercial banks will have to … [Read more...] about Bad debt settlement process going slowly
VietNamNet Bridge - As of September 30, the Bank for Investment and Development of Vietnam (BIDV) had taken the lead for bad debt among the three largest State-owned commercial banks of Vietnam, followed by the Bank for Foreign Trade of Vietnam (Vietcombank) with over VND7,100 billion and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), with approximately VND4,700 trillion. According to a report on the three big banks, by September 30, the non-performing loan ratio (NPL) was 0.95% for VietinBank, 2% for Vietcombank and 2.16% for BIDV. Vietcombank had a total of VND7,141 billion of bad debts, down by VND300 billion over the same period of 2014, accounting for 2% of the total outstanding loans. The potentially unrecoverable debt increased by 38%, from VND3,571 in the early year to VND4,938 billion billion, accounting for 69% of the total bad debt. By September 30, Vietinbank’s bad debt was approximately VND4,700 trillion, equivalent to 0.95% of its … [Read more...] about Vietcombank, BIDV, VietinBank: Which bank has the most bad debt?
Its current chartered capital is VND 18,852billion. Sacombank’s representative announced two major goals in 2018-2020 period will be to speed up Sacombank restructuring process and the treatment of bad debts to improve its asset quality.In addition, the bank will expand cooperation relation aiming to reduce competitive pressure in the sector and become top retail bank in the country and the region.YEN LAM-Translated by K.LienSacombank's … [Read more...] about Sacombank’s bad debt ratio below 3 percent in 2018
VAMC settles VND66 trillion of bad debtThe Saigon Times Daily HCMC - Vietnam Asset Management Company (VAMC) has settled bad debt worth VND66 trillion (about US$2.9 billion) since it was founded in 2013, and the progress is getting faster, according to VAMC general director Doan Van Thang. Since the National Assembly’s Resolution 42/2017/QH14 on settlement of bad debt at credit institutions came into force in August 2017, VAMC has settled VND5 trillion in debt, bringing the total amount settled in the year to date to about VND16 trillion. The company has plans to acquire at least VND2 trillion of bad debt from credit institutions at market prices from now until the end of this year, according to VnEconomy online newspaper. Thang said Resolution 42 has effectively facilitated bad debt collection and settlement, especially property seizure. Previously, credit institutions and VAMC seized debtors’ properties on the basis of Decree 163/2006/ND-CP on secured transactions. … [Read more...] about VAMC settles VND66 trillion of bad debt