Transactions at Vietcombank (Photo: VNA) Hanoi (VNS/VNA) - The number of non-performing loans (NPLs) at many banks has decreased dramatically in the past few months, with some even posting a decline of more than half. According to banks’ financial reports, by the end of 2018, total NPLs of 15 banks, including VPBank, Vietcombank, Sacombank, MBBank, Techcombank, VIB, LienVietPostBank, ACB, ABBank, TPBank, PGBank, BacABank, VietBank, Saigonbank and Kienlongbank, dropped by 17.7 percent against the end of the third quarter of 2018 to more than 34.81 trillion VND (1.48 billion USD). The decline was unexpected as NPLs reportedly increased significantly in the first three quarters of last year. Saigonbank was the most unexpected case when its NPLs in the fourth quarter dropped by up to 66 percent against the previous quarter, which helped the bank’s NPLs stand at 301 billion VND by the end of 2018. The result contributed to reducing the bad debt ratio at Saigonbank from 2.98 … [Read more...] about Domestic banks see bad debt ratio drop
Bad debts ratio
Banks see bad debt ratio drop
The number of non-performing loans (NPLs) at many banks has decreased dramatically in the past few months, with some even posting a decline of more than half. According to banks’ financial reports, by the end of 2018, total NPLs of 15 banks, including VPBank, Vietcombank, Sacombank, MBBank, Techcombank, VIB, LienVietPostBank, ACB, ABBank, TPBank, PGBank, BacABank, VietBank, Saigonbank and Kienlongbank, dropped by 17.7 per cent against the end of the third quarter of 2018 to more than VND34.81 trillion (US$1.48 billion). The decline was unexpected as NPLs reportedly increased significantly in the first three quarters of last year. Saigonbank was the most unexpected case when its NPLs in the fourth quarter dropped by up to 66 per cent against the previous quarter, which helped the bank’s NPLs stand at VND301 billion by the end of 2018. The result contributed to reducing the bad debt ratio at Saigonbank from 2.98 per cent at the end of 2017 to 2.2 per cent at the end of 2018. … [Read more...] about Banks see bad debt ratio drop
Vietnam lowers bad debt ratio to 6.3% amid record GDP growth
The Hanoitimes - The downtrend of the bad debt ratio stemmed from stricter asset classification at banks and the warm-up of the local real estate market thanks to faster economic growth which hit a decade high of 7.08% in 2018. Vietnam aims to lower bad debt ratio below 2% in 2019 Foreign investors start hunting for Vietnam’s bad debt assets Vietnam sets to speed up bad debt resolution in next two years Vietnam resolves bad debts worth US$6.04 billion under parliament resolution Vietnam's bad debt ratio unlikely to drop below 3% by 2020: Ministry Vietnam has stepping up efforts to reduce legacy problem loans accumulated in years of easy lending and fast credit growth, leading to a bad debt ratio of 6.3% in the banking system as of end-2018, a central banker has said. The headquarters of the State Bank of Vietnam in Hanoi. Photo: Minh Tuan The ratio is much lower than 10.08% at the end of 2016 and 8.61% as of September 2017, said Le Minh Hung, governor … [Read more...] about Vietnam lowers bad debt ratio to 6.3% amid record GDP growth
Vietnam aims to lower bad debt ratio below 2% in 2019
The Hanoitimes - The monetary policy is expected to remain cautious but flexible, which should be in harmonization with the fiscal and other macro policies. Bad debts to continue affecting banks' profits SBV urges banks to facilitate bad debts resolution Vietnam resolves bad debts worth US$6.04 billion under parliament resolution Vietnam’s government has set target of bringing the bad debt ratio down to below 2% in 2019, local media reported. Illustrative photo. Vietnam’s bad debt accounted for 2.4% of total outstanding loans in 2018, slightly down from the rate of 2.5% in 2017. Additionally, the State Bank of Vietnam (SBV), the country's central bank, is requested to support state-run commercial banks in increasing their respective charter capital, according to the government’s Resolution No.01 detailing key tasks and measures to realize Vietnam’s socio-economic development in 2019. According to the government, the overall … [Read more...] about Vietnam aims to lower bad debt ratio below 2% in 2019
Vietnam’s bad debt ratio unlikely to drop below 3% by 2020: Ministry
The Hanoitimes - The Ministry of Planning and Investment (MPI) considered the target of "having 12 - 15 commercial banks meet Basel II standards by 2020" as feasible. The target of "reducing bad debts ratio in credit institutions to below 3% by 2020" is considered unlikely, VietnamFinance cited a report by the MPI on the economic revamp in the 2016-2020 period as saying. Illustrative photo. As of June 26, Vietnam's bad debts accounted for 2.18% of total outstanding loans, below the 3% target set by the National Assembly, according to the State Bank of Vietnam. From 2012 to the end of March 2018, a total of VND750 trillion (US$32.19 billion) in bad debts were resolved, 40% of which were sold to Vietnam Asset Management Company (VAMC), organizations and individuals, according to a recent report by the MPI. Under Decree No.42, which provides special pilot treatment of bad debts at credit institutions and took effect on August 2017, bad debts sold to VAMC in special … [Read more...] about Vietnam’s bad debt ratio unlikely to drop below 3% by 2020: Ministry