Vietnam’s bad debt shrinking

dong1The bad debt ratio in Vietnam’s banking system eased for a second straight month in June and was 4.46 per cent of the total loans in that month, down from 4.65 per cent in the previous month, the central bank said on August 29.

Non-performing loans (NPLs) in June were still above the figures at end of 2012, when 4.08 per cent of loans were bad, according to data from the State Bank of Vietnam.

The bank did not provide any value for the bad debt as of June. It was around $7 billion in May, based on the central bank’s data. However, independent experts have estimated the ratio could be considerably higher.

Credit ratings agency Fitch said in July that the broad range of NPL estimates came from poor transparency, classification and accounting.

Last month, Vietnam launched an asset firm to buy up the bad debts of its banks, a move touted as one of its biggest reforms but seen as merely a band-aid fix for its ailing, credit-starved economy. But the firm has yet to start buying bad debt, financial analysts said, as the action is closely followed on domestic markets for clues of easing credit.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

The bad debt ratio in Vietnam’s banking system eased for a second straight month in June and was 4.46 per cent of the total loans in that month, down from 4.65 per cent in the previous month, the central bank said on August 29. Non-performing loans (NPLs) in June were still above the figures at end of 2012, when 4.08 per cent of loans were bad, according to data from the State Bank of Vietnam. The bank did not provide any value for the bad debt as of June. It was around $7 billion in May, based on the central...

dong1The bad debt ratio in Vietnam’s banking system eased for a second straight month in June and was 4.46 per cent of the total loans in that month, down from 4.65 per cent in the previous month, the central bank said on August 29.

Non-performing loans (NPLs) in June were still above the figures at end of 2012, when 4.08 per cent of loans were bad, according to data from the State Bank of Vietnam.

The bank did not provide any value for the bad debt as of June. It was around $7 billion in May, based on the central bank’s data. However, independent experts have estimated the ratio could be considerably higher.

Credit ratings agency Fitch said in July that the broad range of NPL estimates came from poor transparency, classification and accounting.

Last month, Vietnam launched an asset firm to buy up the bad debts of its banks, a move touted as one of its biggest reforms but seen as merely a band-aid fix for its ailing, credit-starved economy. But the firm has yet to start buying bad debt, financial analysts said, as the action is closely followed on domestic markets for clues of easing credit.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply