Some banks are speeding up the recovery of non-performing loans (NPLs) this year despite the impact of the COVID-19 pandemic.
Some credit institutions (CIs) that have not yet completed their restructuring roadmap will have to speed up the process to meet the State Bank of Vietnam (SBV)’s deadline this year.
The Vietnam Asset Management Company (VAMC) targeted to settle bad debts worth totally VND50 trillion (US$2.15 billion) this year.
Credit growth would likely reach only 9-10% this year against 13% last year even if the country’s infrastructure investment was good, experts forecast.
The Ministry of Transport has recently proposed the Government to consider and approve the option of increasing BOT toll fees in order to remove difficulties for the investors who suffered revenue losses.
The Ho Chi Minh City Real Estate Association (HoREA) has asked for corporate bond regulations to be loosened to help businesses get through the COVID-19 pandemic.
The Southeast Asia Joint Stock Commercial Bank (SeABank) has completed the early redemption of all special bonds at the Vietnam Asset Management Company (VAMC), thereby helping the bank proactively monitor and handle bad debts.
The banking sector had made considerable headway into settling bad debt, restructuring credit institutions and developing the banking system two years since the National Assembly issued a resolution on the industry.
Nearly 9.6 trillion VND (417.3 million USD) worth of bad debts were handled each month from August 15, 2017 to August 31, 2019, or 4.7 trillion VND higher than that during the 2012 – 2017 period.
Many banks are auctioning mortgaged assets, mainly real estate, worth trillions of Vietnamese dong to speed up the resolution of non-performing loans.
The Government has asked the Ministry of Planning and Investment (MPI) to focus on removing difficulties and speeding up the progress of public investment disbursement.
VOV.VN - Commercial banks have been proactive in handling bad debts with many posting an increasing ratio.
The handling of bad debt among credit institutions would be audited this year in order to formulate recommendations for effectively implementing a National Assembly resolution, according to the State Audit Office of Vietnam (SAV).
The Vietnam Asset Management Company (VAMC) plans to resolve at least VND140 trillion (US$5.95 billion) of non-performing loans (NPLs) from now until 2020, of which VND34.5 trillion will be settled this year.
Banks are putting non-performing loans (NPLs) and collateral of default borrowers on auction in a move to speed up the resolution of bad debts.
HSBC, Standard Chartered and BNP Paribas are just some of the institutions that have joined a mass exodus.
Non-performing loans (NPLs) of credit institutions were controlled effectively in 2017, helping the NPL ratio of the entire banking system reduce to 2.3 percent from 2.46 percent in late 2016.
2017 was a good year for Vietnam’s banking sector with big profits for many banks and a decreased bad debt ratio.
Sacombank and VP Bank are leading the list of banks with the highest NPL (non-performing loans) ratios.
To obtain a 20% credit growth rate this year, total outstanding loans will have to increase by VND1,200 trillion. In the last five last months of the year, VND700 trillion is expected to be pumped into circulation.