bad debts

Update news bad debts

Bad debt ratio of banking system surges to 3.56 per cent

The bad debt ratio of the banking system skyrocketed from 2 per cent at the beginning of this year to 3.56 per cent, or more than VNĐ440 trillion, at the end of July 2023, according to the latest data from the State Bank of Vietnam (SBV).

SBV Governor warns of real estate bad debts

The leader of the State Bank of Vietnam (SBV) said that the non-performing loan ratio in the real estate sector is on the rise compared to the end of the previous year, with figures of 1.8 percent in July 2022 and 2.58 percent in July 2023.

Central bank raises alarm as real estate non-performing loans surge

The rise in non-performing loans within the real estate sector has become a cause for alarm as the bad debt ratio escalated from 1.53% in the previous year to 2.47% during the first half of 2023.

Banks stay afloat in spite of bad debts

Even as the biggest real estate businesses struggle with debts and bankruptcy, banks continue to stay afloat and tackle the bad debt situation over a period of time. This ability of banks helps bank stocks not fall too low, despite overdue payments.

Slowing realty market hinders big banks in bad debt recovery

Having hold of a large amount of bad debts mortgaged by real estate, Viet Nam’s four biggest State-owned banks are urgently recovering the debts, but the work remains tough for them due to the slowdown of the realty market.

Bad debts situation getting worse

Bad debts always come hand in hand with business activities of all commercial banks.

Bad debts remain a challenge for banks in Q4 2022

Besides interest and exchange rates, non-performing loans (NPLs) are also a concern for banking activities in the remaining months of 2022, experts have warned.

Businesses seek capital as banks run out of ‘credit quota’

Businesses in many fields have voiced their concerns about the lack of capital from banks.

Vietnamese need 50 years of savings to buy an apartment

When people with an average income have to save 30 years to buy an apartment, this indicates a sign of a real estate bubble. In Vietnam, this figure is an average of 57 years.

Gov’t wants to extend bad debt settlement policy

The Government has proposed the National Assembly allow extending the validity of Resolution 42 on bad debt settlement until 2023, it was announced at the 15th National Assembly’s third session on May 24.

Bad debts affecting key industries

The worrisome situation of rising bad debts during the ongoing Covid-19 pandemic has affected several key industries. 

VN banks struggle to sell mortgaged land to collect money for debts

Many banks are rushing to sell land and other assets used as collateral for loans to collect debts, including properties worth trillions of dong.

Banks prepare capital to meet credit demands in 2022

Banks have been increasing the attraction of deposits to have enough capital for the credit needs of customers. Credit demand is expected to increase from the first quarter of this year.

Experts suggest banks not be involved in economic recovery packages to avoid bad debts

Though businesses need the Government’s economic recovery packages to rebound from the pandemic, the Government should consider limiting the participation of commercial banks in the packages to help them avoid bad debt risks, experts suggest.

Bad debts need to be curbed

After the Circular issued by the State Bank of Vietnam on debt restructuring, many bad debts of commercial banks have become non-bad debts because they do not have to change the debt groups.

VN banks boost sales of mortgaged real estate to recover bad debts

Many banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of VND, to recover debts amid the recovery of the realty market.

Solutions proposed to handle bad debts amid COVID-19 pandemic

Bad debts may climb by the end of the year as the pandemic has interrupted the production of many enterprises and they had no revenue to repay debts. 

Bad debts of 20 banks up 4.5% in 2020

The non-performing loans (NPLs) of 20 local banks at the end of 2020 rose by 4.5 per cent year-on-year to VND83.4 trillion (US$3.58 billion), according to the banks’ latest financial statements.

Pandemic causes bad debts to surge

Non-performing loans (NPLs) among commercial banks increased sharply in the first three quarters of this year due to the adverse impacts of the COVID-19 pandemic.

Banks need to be cautious of bad debts

The financial statements of the third quarter of this year of commercial banks showed that more than two-thirds of banks posted fairly high growth in their profits amid the context that the economy was still facing the Covid-19 pandemic.