45,000 billion VND of bad debt has been handled

Regarding bad debt handling, by the end of July 2017, the banking system estimated to have handled about 45,000 billion VND.

According to the National Financial Supervisory Commission, by the end of September 2017, the reported bad debt ratio was about 2.9% (about 2.6% in 2016), mainly concentrated in a number of banks with weak financial capacity and management and governance capabilities, which are in the process of restructuring.

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Regarding bad debt handling, by the end of July 2017, the banking system estimated to handle about 45,000 billion VND. Of which, bad debt recovered from customers accounted for about 33.6%, using risk reserves to handle bad debt was estimated at about 26.3% and selling debt to VAMC was about 31.7%...

It is estimated that by the end of September, the credit risk reserve balance will be about VND110,000 billion, an increase of about 22% compared to the end of 2016.

In addition, the National Financial Supervisory Commission also assessed that the profit situation of the credit institution system is positive with after-tax profit reaching about VND47,000 billion, up 39% over the same period in 2016, mainly thanks to contributions from credit and service activities.

According to TNO