Bad debt has returned to become a headache for the banking industry this year as it increased again in Q1 2024 after declining in Q4 2023 for the first time in eight consecutive quarters.

Non-performing corporate bonds are looming large due to a high financial leverage ratio and negative cash flow of unlisted, cash-strapped real estate companies.

Several commercial banks reported profits higher than VND10 trillion for the first half of the year.

In the last half of 2022, banks may ease loan conditions so that more customers could access credit, given the positive economic outlook and their improving financial capacity.

The national legislature has requested the Government to write a draft to prepare for the expiration of Resolution 42 on bad debt settlement and hand in the draft no later than May 2023, but insiders say the deadline is tight.

The expiration of Circular 14 on debt rescheduling and interest rates reduction in late June is likely to expose banks to higher levels of non-performing loans (NPLs), yet insiders say it is unnecessary to extend it.

The National Assembly (NA) has agreed to extend a pilot resolution on bad debt settlement until the end of 2023 instead of this year.

A report submitted to the National Assembly for extending the application period for Resolution 42/2017/QH14 on bad debts settlement by credit institutions (CIs) states that bad debts as of August 15, 2017, were at VND541.6 trillion.

The National Assembly (NA)’s Standing Committee has agreed to extend a pilot resolution on bad debt settlement until the end of 2023 instead of this year.

Experts said a law on bad debt settlement should be put in place before two regulations expire in six months.

The wife of billionaire Tran Dinh Long has added her name to the list of top 10 stock billionaires. Luong Thi Cam Tu has been appointed as Chair of Eximbank. Boss Duc’s businesses face compulsory delisting. Top business stories:

Despite the negative impacts of the Covid-19 pandemic, the credit of the country economy in 2021 witnessed an increase of 13 percent compared to last year. The bad news is an unavoidable rise of bad debts in many banks.

Banks have reported an increase in bad debts because of the impact of the fourth Covid-19 wave. Old debts have not been settled and new debt is increasing.

The bad debt trading floor of Vietnam Asset Management Company (VAMC) is set to begin operation today (October 15).

Banks have put on sale consumer debts with no collateral with very small value. One of the debts has the value of VND483,000, including principal, interest and fine.

VietBank’s president has unexpectedly resigned and his position has been transferred to a former government official.

A daring decision has helped the financial market and the banking system to stand firmly during Covid-19.

Some organisations have rushed to sell shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) to retrieve bad debts, but it was not easy to find buyers agreeing with the offered price.

State Bank Vietnam (SBV) Governor Le Minh Hung said at a conference on reviewing socio-economic development in the first half of the year that SBV has adjusted the 2020 credit growth rate limits of some banks.