27.3 C
Ho Chi Minh City
Saturday, July 20, 2024

spot_img

TAG

bank loans

Bad debt seen from loan portfolios

Bad debt is currently the biggest concern in the banking system. The financial reports by many banks in the first quarter of this year show a significant increase in bad debt against the previous quarter. The fact that the State Bank of Vietnam’s Circular 02 will be extended indicates the potential risk of bad debt. Taking a close look at the loan portfolios of different banks, one can comprehend bad debt risks at these banks. Bad debt reflects the quality of a bank’s loan portfolio. Given the spike in bad debt at banks, induced by economic woes at home and abroad, provisioning policy will depend on each bank’s risk appetite. Consequently, the characteristics of each bank’s loan portfolio can provide useful information. Each bank has a unique loan portfolio based on its strategy, reflecting its credit growth strategy through information about borrowers (businesses or individuals) and industries with a high loan proportion (industrial production, real estate or commerce). Therefore, understanding a loan portfolio is the foundation for evaluating a bank’s growth potential as well as evaluating possible bad debt risks in each period. Loan portfolios of banks Essentially, a bank is a financial institution that relies on capital mobilized. Banks […]
To read more, please click here.

Bad debts loom large

Bad debts have been a concern in Vietnam’s banking sector so far this year. This indicates the vulnerabilities in the financial system and raises...

Real estate credit soars in HCMC

HCMC – Real estate loans in HCMC have surged ahead of overall credit growth in the first four months of 2024, indicating a positive...

Credit rises 9.6% in HCMC in Jan-Apr

HCMC – January-April credit in HCMC grew by 9.6% year-on-year to VND3.5 quadrillion, driven by an increase in long-term credit, according to data from...

Jan-Apr loans grow in HCMC

HCMC - Credit in HCMC in the first four months of this year increased by 1.31% against December 2023 and 9.33% year-over-year. Nguyen Duc Lenh,...

Consumer lending competition heats up

The burgeoning consumer debt market in Vietnam is sparking increased competition among finance companies, with Thai firms entering the fray as fresh contenders in...

Real estate firms want lower interest rates

HCMC – Real estate businesses in Vietnam are calling for further interest rate cuts, citing uneven rate cuts among banks and complex borrowing procedures...

Recovery seen in various industries – PM

HCMC - Prime Minister Pham Minh Chinh today, March 14, highlighted positive improvements across a range of industries as he addressed a conference on...

Foreign capital preferred by local businesses – economist

HCMC – There is a growing tendency among Vietnamese businesses to seek funding from external sources, as they view it as a more financially...

No lending restrictions on to-be-built homes – SBV

The State Bank of Vietnam (SBV) has made clear that its recently issued Circular 22 imposes no restrictions on lending to those buying homes...

Latest news

spot_img