The State Bank draft circular, which has been released for public comments, supplements regulations on conditions for increasing capital at subsidiaries and affiliated companies of credit institutions.
Some bank leaders believe the bad debt ratio will peak in the third quarter of this year and start to gradually decrease from the beginning of the next year.
Credit growth has reached 12.97 per cent so far and is likely to hit 14 per cent this year as credit expands very strongly towards the end of the year, the head of the State Bank of Viet Nam (SBV)...
At least around seven billion shares issued as dividends, under employee stock ownership plans and public issuances by banks are expected to enter the stock market in the two remaining quarters of the year.
MB posted the record low bad debt ratio of 0.76 per cent in the first half of the year in its history so far. This has been also the lowest level in the banking industry.
The bad debt ratio of Sai Gon Thuong Tin Commercial Joint Stock Bank
(Sacombank) fell from 1.46 per cent to 1.19 per cent during the first
quarter of this year.
Several measures have been suggested by economic experts to help the
banking sector reduce the non-performing loan (NPL) ratio to less than 3
per cent in 2015, as required by the Government.
Total funds provided to cover any risk reached VND77.3 trillion (US$3.6
billion) by the end of June, up 10.9 per cent over the 2013-end figure.
If the funds are put to use, the entire bad debt ratio will fall to 2.2
per cent.
The Prime Minister Nguyen Tan Dung told the State Bank of Viet Nam to
increase supervision at credit institutions to ensure a safe and sound
monetary system.
Commercial banks are banned from opening new branches if they have a
bad debt ratio of more than 3 per cent of their total outstanding loans,
announced the State Bank of Viet Nam (SBV)