Npl

Carolyn Turk, country director for the World Bank in Vietnam Recent bank failures in the US and Europe serve as a wake-up call to financial sector authorities around the world to strengthen regulation and supervision of financial institutions. The recent episode of domestic financial market trouble underscores the same need in Vietnam. While the authorities have managed to control the situation, the measures have so far been focused on merely containing the problems. More structural reforms in the financial sector will be necessary to improve its long-term resilience. Vietnam's aspiration to become a high-income country requires a well-developed and stable financial industry that supports the private and public sectors. The review of the Law on Credit Institutions (LCI) and the Law on the State Bank of Vietnam (LSBV) is an excellent opportunity to kickstart these structural reforms. The LCI and LSBV are the foundational documents that enable the State Bank of Vietnam … [Read more...] about Opportunities and challenges for Vietnam in financial sector reform

How do you perceive banking sector performance after banks released their first-half financial statements? Tran Thi Khanh Hien, head of Research, MB Securities Total post-tax profit of listed banks reduced slightly by 1.4 per cent in the second quarter, showing an improvement compared to Q1 when such profit fell nearly 6 per cent. In H1, generally, total operating profit after tax of banks shed 3 per cent, in which that of state lenders eyed more positive outcomes growing 16.8 per cent, and that of private lenders went down 10 per cent. Generally, total operating income (TOI) of the whole sector nearly went sideways in H1, with interest income rising slightly by 6 per cent, making up 79 per cent of the total. Non-interest income was down 15 per cent during the period, primarily due to sinking income from bancassurance services, which incurred adverse impacts from Ministry of Finance efforts to inspect insurance distribution through banks from late February … [Read more...] about Asset quality crucial to banking sector

A view of a TPBank’s transaction office in Hà Nội. TPBank's total bad debts by the end of the second quarter of 2023 increased sharply by nearly three times compared to the beginning of this year to VNĐ3.91 trillion. — VNA/VNS Photo Total non-performing loans (NPLs) at many banks surged in the first half of this year due to the poor business performance of the whole economy, and experts forecast the trend will continue. The latest financial statement of TPBank showed the bank's total NPLs by the end of the second quarter of 2023 increased by nearly three times compared to the beginning of this year to VNĐ3.91 trillion. Of which, substandard debts increased 5.6 times to VNĐ2.14 trillion and doubtful debts also increased nearly 2.5 times to nearly VNĐ1.13 trillion. The ratio of NPLs to total outstanding loans of the bank increased sharply from 0.84 per cent at the beginning of this year to 2.21 per cent. At BaoVietBank, the total NPLs as of June 30 was VNĐ1.75 trillion, up 58 … [Read more...] about Bad debts skyrocket in wake of poor business performance