Bad debts landscape at small banksThere has been great variations in small-scale banks’ bad debts performance in the first half of the year, with some showing great improvements, while others struggle to cope. Apart from banks that saw positive developments in their bad debts, several other banks reported a worsening situation. A typical case of sharply rising bad debts among banks of modest size was Saigon Bank whose bad debts ratio surpassed 6 per cent at the end of June 2018, while the limit set by the state is 3 per cent. Since its establishment in October 2013 to the end of 2017, VAMC, dubbed as Vietnam’s bad debt bank, succeeded in recouping about VND81.5 trillion ($3.6 billion) of bad debts out of the VND307.9 trillion ($13.6 billion) total principal bad debt volume. Apart from banks that saw positive developments in their bad debts, several other banks reported a worsening situation.

Source: VietNamNet News August 30, 2018 09:22 UTC