Update news NPL
The State Bank of Vietnam aims to again curb the inflation below 4 percent and sustain the monetary market this year, SBV Governor Le Minh Hung told a teleconference of the banking sector in Hanoi on January 2.
VietNamNet Bridge - Vietnam was expected to establish a debt trading market in 2015, but the Ministry of Finance cannot say clearly when the legal framework for the market will be set up.
VietNamNet Bridge - Banks’ finance reports in 2016 show good news and bad news. Most of them had profits higher than the year before, but the number of non-performing loans increased.
VietNamNet Bridge - Foreign investors have been reluctant to buy Vietnam’s bad debts, after initial consideration.
Governor of the State Bank of Viet Nam Nguyen Van Binh has set a new target to bring down non-performing loans (NPLs) to less than 3 per cent by September.
VietNamNet Bridge - The Governor of the State Bank of Vietnam Nguyen Van Binh has said that the bad debt ratio will be reduced to 3 percent by the end of the year from 4.83 percent.
Though NPLs have increased significantly, which forced commercial banks to make higher provisions against risks, they still have reported an increase in profit in the first quarter of 2015 in comparison with the same period last year.
VietNamNet Bridge - Commercial banks’ provisioning costs have been increasing, even though bank restructuring has been proceeding well.