After hitting a record low in 2022, Vietnam’s money supply (M2) will rebound in 2023 and become an important driver for the recovery of the stock market, KB Securities Vietnam (KBSV) forecast.
Amid rising non-performing loans (NPLs), many banks have strongly increased their loan-loss reserve (LLR) funds to readily face uncertainties in the future.
Besides interest and exchange rates, non-performing loans (NPLs) are also a concern for banking activities in the remaining months of 2022, experts have warned.
National Assembly (NA) deputies on June 1 discussed the implementation of the socio-economic development plans and the state budget in 2021 and in the first months of 2022 as well as the settlement of bad debts of credits institutions.
Ensuring flexibility in curbing rising petrol prices and settling bad debts of credit institutions were scrutinised by National Assembly deputies on June 1 at a debate on the implementation of socio-economic development plans and the state budget in 2021 and in the first months of 2022 during the legislature's ongoing third session.
The scale of capital mobilisation through corporate bonds is forecast to decrease sharply, but there will be a drastic change in quality, according to a study on the corporate bond market by FiinRatings.
The State Bank of Vietnam (SBV) has proposed to continually handle bad debts of credit institutions based on the provisions of pilot Resolution 42/2017/QH14 until 2025 instead of this year.
Though enterprises and individuals need the Government’s large economic recovery packages to rebound from the pandemic, the Government should consider limiting the participation of commercial banks in the packages to help them avoid bad debt risks, experts suggest.
Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has issued Directive No.01/CT-NHNN on organising the implementation of the key tasks of the banking sector, with a focus on improving credit quality and tightly controlling loans to potentially risky industries.
Banks’ pre-tax profits this year will remain relatively positive but are yet to be sustainable as banks haven’t set up contingency reserves for restructured debts.
Many banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of VND, to recover debts amid the recovery of the realty market.
The State Bank of Vietnam (SBV) has warned commercial banks about rising bad debts and loans from large corporate customers whose credit values top 500 billion VND (21.5 million USD) each.
The Asia Commercial Joint Stock Bank (ACB) has set a growth target of over 10 percent in pre-tax profit to more than 10.6 trillion VND (461.5 million USD) this year.
The Technological and Commercial Joint Stock Bank (Techcombank) has set a target of posting consolidated pre-tax profit of 19.8 trillion VND (863.76 million USD) this year, a year-on-year surge of 25.3 percent.
Banks will have to set aside money for potentially unrecoverable COVID-19 affected loans from this year, according to an amended circular drafted by the State Bank of Vietnam (SBV).
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