Từ khóa: #Non-Performing Loans

Given the challenging economic environment, the performance of numerous banks is rather bleak, particularly due to the mounting bad debt levels.

The State Bank of Vietnam (SBV) has never issued any documents or statements ordering credit for real estate be tightened, Deputy Governor Dao Minh Tu said on February 8.

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.

Profit reports in the first quarter of this year of commercial banks have revealed the huge profits of lenders. This is also one of the reasons why banking stocks strengthened strongly recently, contributing to supporting the VN-Index to set a new high in history.

At the end of 2020, non-performing loans (NPL) in commercial banks were at a very low level. Now, many banks have also finished settling bad debts at the Vietnam Asset Management Company (VAMC). However, behind the facade of an optimistic scenario, banks are still reeling under the burden of bad debts.

According to the State Bank of Vietnam – Ho Chi Minh City Branch (SBV-HCMC), the credit growth in the city was at 8 percent last year.

Although the capital source for the real estate market has become tighter and tighter, the latest report by the State Bank of Vietnam (SBV) shows that the total credit outstanding balance of the whole economy is VND8.3 quadrillion; of which, credit in the real estate field is about VND1.6 quadrillion, accounting for nearly 20 percent of the total credit outstanding balance of the whole economy.