Banks settle VND10.5 trillion in bad debts each month
Banks settle VND10.5 trillion in bad debts each month
Local credit institutions settled bad debts worth VND10.5 trillion per month between August 15, 2017, and December this year, said Nguyen Trong Du, deputy chief inspector of the Banking Inspection and Supervision Agency, under the State Bank of Vietnam.
At a press briefing on the banking system’s plans for next year held today, December 12, Du remarked that the total value of monthly settled bad debts was VND4.9 trillion higher than that in the 2012-2017 period, when the National Assembly’s Resolution 42/2017/QH14 on the pilot settlement of bad debts by credit institutions was rendered invalid, news site Vietnamplus reported.
The deputy chief inspector noted that a total of VND305.7 trillion in bad debts was settled during the period. The figure was VND1.064 quadrillion from 2012 to December this year.
The average bad debt ratio at credit institutions was maintained at 1.89%, reaching the target of below 2%.
In addition, the restructuring of credit institutions has been sped up. The banking system’s stability and safety have been ensured as their charter capital has increased annually and their governance, supervision and risk management capacity has gradually met international standards.
Transparency in banking services has been improved as well.
Solutions to settle bad debts have been deployed concurrently with those to prevent new bad debts, contributing to an increase in credit quality and reduction of bad debts among local credit institutions.
In the coming years, the central bank will direct credit institutions to continue settling bad debts in line with the approved plan for the 2016-2020 period and keep a close watch on credit institutions’ bad debt settlement process to help them remove obstacles.
