Update news bad debt
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.
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.
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.
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.
Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.