The process of restructuring and handling bad debts among credit institutions has so far achieved positive results while the overall credit quality has improved. Financial statements released by 15 large and medium domestic banks for the first quarter of 2019 show a distinct differentiation of bad debts among these entities. By March 31, the total number of non-performing loans (NPLs) of the 15 banks had amounted to more than VND76 trillion (US$3.24 billion), a rise of 5.8 per cent since the beginning of the year. Eleven of the 15 banks saw increased levels of bad debt during the year’s first three months. Only nine of them posted an increased ratio of NPLs to total lending, due to boosting credit. VPBank reportedly had the highest NPL ratio, accounting for 3.62 per cent of total lending, a little more than the ratio of 3.5 per cent seen at the beginning of the year. This was followed by the National Citizen Bank (NCB) with a bad debt ratio of 2.72 per cent, a sharp … [Read more...] about Banks speed up resolving bad debts
Recovered bad debt journal entry
Banks recover bad debts as collateral liquidation simplified
The National Assembly’s Resolution 42/2017/QH14 on dealing with bad debts of credit institutions seems to have created a more efficient mechanism for disposing of collaterals to recover bad debts. According to analysts, the most prominent feature of Resolution 42 is the favorable mechanism it has given rise to for handling collaterals. It allows credit institutions to seize and sell assets at market prices through simplified legal procedures. Sacombank is now offering a number of properties for sale, including four land plots worth hundreds of millions of US dollars. The largest, the Phong Phu Industrial Park in Binh Chanh District, HCMC, has an auction reserve price of VND7.6 trillion ($327 million). Located on Nguyen Van Linh Road with 134 hectares for factories and services, it has 50 years to run on its lease. Another property, offered at VND6.7 trillion ($289 million), is a 530,000-square-meter land plot in Tan Binh District. The third, a residential project measuring … [Read more...] about Banks recover bad debts as collateral liquidation simplified
Banks recover bad debts as Resolution 42 simplifies collateral liquidation
The National Assembly’s Resolution 42/2017/QH14 on dealing with bad debts of credit institutions seems to have created a more efficient mechanism for disposing of collaterals to recover bad debts. According to analysts, the most prominent feature of Resolution 42 is the favorable mechanism it has given rise to for handling collaterals. It allows credit institutions to seize and sell assets at market prices through simplified legal procedures. Sacombank is now offering a number of properties for sale, including four land plots worth hundreds of millions of US dollars. The largest, the Phong Phu Industrial Park in Binh Chanh District, HCMC, has an auction reserve price of VND7.6 trillion ($327 million). Located on Nguyen Van Linh Road with 134 hectares for factories and services, it has 50 years to run on its lease. Another property, offered at VND6.7 trillion ($289 million), is a 530,000-square-meter land plot in Tan Binh District. The third, a residential project measuring … [Read more...] about Banks recover bad debts as Resolution 42 simplifies collateral liquidation
VAMC, banks auction mortgaged assets to recover bad debts
VAMC, banks auction mortgaged assets to recover bad debtsThe Saigon Times Daily VAMC and multiple banks have auctioned mortgaged assets to settle bad debts - PHOTO: THANH HOA HCMC - Vietnam Asset Management Company (VAMC) and multiple banks have put up the mortgaged assets for auction to speed up the settlement of bad debts, according to Nguoi Lao Dong newspaper. VAMC announced its business plan earlier this year, which stated the company would buy a maximum of VND32 trillion (US$1.4 billion) worth of nonperforming loans using its special bonds and would use cash to purchase VND3.5 trillion worth of bad debts. VAMC targeted settling some VND34.5 trillion worth of bad debts this year. VAMC recently seized entitlement certificates over 13 land plots and land-attached properties, including a plot of land and assets on Nam Ky Khoi Nghia Street in HCMC’s District 3. Green City Construction Investment JSC had used the assets as collateral for loans taken from Vietnam Bank for … [Read more...] about VAMC, banks auction mortgaged assets to recover bad debts
Sacombank recovers bad debts
At a transaction office of Sacombank in HCM City. — VNS PhotoViet Nam News HCM CITY — Sacombank recovered more than VNĐ3.6 trillion (over US$154.5 million) worth of bad debt in the first half of the year, bringing its non-performing loan ratio to 3.3 per cent compared to 4.28 per cent at the end of last year. It expects to bring down bad debts to 3 per cent by the end of this year. The bank announced a pre-tax profit of nearly VNĐ1 trillion in the first half of the year, which was equivalent to 54.2 per cent of its full-year target. According to its consolidated financial statement for the second quarter of 2018, Sacombank’s total assets reached nearly VNĐ401 trillion, up 8.7 per cent from the beginning of the year, of which the proportion of profitable assets increased by 3.5 per cent. Its capital mobilisation from economic organisations and individuals reached over VNĐ364 trillion, an increase of 11.9 per cent compared to the beginning of … [Read more...] about Sacombank recovers bad debts