Nguyen Tri Hieu, a banking expert, tells Hai Quan (Customs) newspaper that the Government should appoint an agency to develop an official transaction floor for buying and selling debt. What’s your assessment of bad debt settlement in our banking system now? According to the latest report, bad debt in our banking system has reduced to 2.18 per cent. This percentage indicates that banks have reduced their bad debt risks. This is a positive sign. However, over the last five years, just 1.4 per cent of the bad debt ratio was reduced. In my opinion, this result is not really optimistic. The problem here is that many banks still accept risks by lending money to real estate developers, to consumers or investors in stock exchange and others. These are the key reasons making the bad debt in the banking system to more than 2 per cent. It is a common sense that if the banking sector has a low risk level it should have a bad debt ratio less than 1 per cent. In my opinion the 2.18 per cent … [Read more...] about Vietnam needs a public transaction floor for bad debts
Bad debts
Việt Nam needs a public transaction floor for bad debts
Nguyễn Trí Hiếu. — Photo baohaiquan.vn Nguyễn Trí Hiếu, a banking expert, tells Hải Quan (Customs) newspaper that the Government should appoint an agency to develop an official transaction floor for buying and selling debt. What’s your assessment of bad debt settlement in our banking system now? According to the latest report, bad debt in our banking system has reduced to 2.18 per cent. This percentage indicates that banks have reduced their bad debt risks. This is a positive sign. However, over the last five years, just 1.4 per cent of the bad debt ratio was reduced. In my opinion, this result is not really optimistic. The problem here is that many banks still accept risks by lending money to real estate developers, to consumers or investors in stock exchange and others. These are the key reasons making the bad debt in the banking system to more than 2 per cent. It is a common sense that if the banking sector has a low risk … [Read more...] about Việt Nam needs a public transaction floor for bad debts
VIB buys back all bad debt from VAMC
VIB serves two million individual customers and tens of thousands of corporate customers. — VNS PhotoViet Nam News HÀ NỘI — Vietnam International Bank (VIB) announced last week that it has repurchased more than VNĐ1.46 trillion (US$64.2 million) worth of debt from the Việt Nam Asset Management Company (VAMC). With this move, VIB was recognised by the State Bank of Việt Nam and VAMC as one of four banks which required all bad debts that they sold to VAMC. Three others are Vietcombank, Techcombank and MBBank. Earlier in July, VIB released its financial report in the first half of 2018 with a profit of over VNĐ1.15 trillion ($51 million), triple that of the same period last year, or equivalent to 57 per cent of the yearly target. During the period, the banks’ net revenue reached VNĐ2.7 trillion, up 56 per cent year-on-year, while its lending saw a yearly rise of 9 per cent to VNĐ91.7 trillion. From January to July, … [Read more...] about VIB buys back all bad debt from VAMC
Bad debt ratio drops to 2.18% in five years
Viet Nam News HÀ NỘI - The non-performing loan (NPL) ratio at Việt Nam’s credit institutions has dropped from 3.61 per cent in 2013 to 2.18 per cent currently, according to the Việt Nam Asset Management Company (VAMC). Deputy governor of the State Bank of Việt Nam (SBV) Nguyễn Kim Anh hailed the operation of VAMC over the past five years, saying that the company contributed significantly to lowering the NPL ratio of the entire banking system to below 3 per cent, while supporting enterprises during the debt-restructuring process. According to VAMC chairman Nguyễn Tiến Đông, until June 30 this year, nearly VNĐ310.52 trillion (US$13.5 billion) of NPLs were resolved through VAMC, accounting for 40 per cent of the entire banking system’s total NPLs. Of the total, VAMC coordinated with credit institutions to recoup nearly VNĐ100 trillion. Thanks to the National Assembly’s new resolution on NPL effective … [Read more...] about Bad debt ratio drops to 2.18% in five years
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