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.
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.