While most credit institutions have made possible attempts to reduce their bad debt ratio to a safe level at below three per cent, VPBank and Sacombank remain cautious to be fairly high at 4.07 per cent and 3.74 per cent respectively.
Sacombank's bad debt ratio was reduced to a little over three per cent, which is considered the safety limit, in less than two years.
The amount of bad debt that the Vietnam Asset Management Company (VAMC) has to deal with this year accounts for nearly half of the total bad debts VAMC has bought from banks.
New details regarding the business performance and financial health of Hoan Cau Group reveal a large pool of bad debt of VND2.4 trillion (roughly US$105 million) that was just repossessed by VAMC (Vietnam Asset Management Company).
Shares ended Monday on a positive note as banks reacted to information that the new bad debt settlement resolution will likely be approved by the National Assembly this week.
Shares advanced on Monday on strong support from the banking sector, following a new National Assembly resolution to resolve bad debt.
