AgriBank has the highest non-performing loan ratio among state-owned commercial banks.
According to Governor Nguyen Van Binh, the bank's non-performing loan ratio is currently at 6.14%.
Responding to a question from National Assembly representative Bui Thi An (Hanoi delegation) during the interpellation session on the afternoon of August 21st, regarding which state-owned commercial bank has the highest non-performing loan ratio, Governor of the State Bank of Vietnam Nguyen Van Binh stated: According to data reported by credit institutions, as of June 30th, the Industrial and Commercial Bank of Vietnam had a non-performing loan ratio of 2.45%, the Agricultural and Rural Development Bank of Vietnam 6.14%, the Vietnam Investment and Development Bank 2.52%; the Vietnam Foreign Trade Bank 3.55%; and the Mekong Delta Housing Development Bank 2.63%. “Based on these figures, the Vietnam Agricultural and Rural Development Bank (Agribank) has the highest non-performing loan ratio among state-owned commercial banks,” the Governor said.
The Governor also cited figures reported by credit institutions, stating that according to current regulations, non-performing loans (NPLs) as of June 30th for state-owned commercial banks accounted for 3.76%; while NPLs for joint-stock commercial banks accounted for 4.73%. "Based on these figures, the NPLs of joint-stock commercial banks are higher than those of state-owned commercial banks."
Responding to the question of how many banks are appropriate for the size of Vietnam's economy, the Governor said: “We have both an excess and a shortage of banks. We have an excess of weak, inefficient banks and banks engaging in unfair competition. However, according to international standards, we lack banking services. Abroad, there is one transaction point for every 1000 people, while this number is extremely low in our country. Therefore, this is the central focus of the banking system restructuring in the coming period, to ensure that banks are healthier, can provide more services to the people, and meet the capital needs of the economy.”
According to (VOV) - LT
