- February 9, 2022
- Posted by: admin
- Category: Daily News
- The State Bank of Vietnam (SBV) said that banks had managed to accomplish many of the objectives set by the SBV in its restructuring scheme to handle bad debt during 2016-20. However, many objectives were not met because of the adverse effects of the pandemic.
- By the end of 2021, bad debt was 1.9%, a slight uptick from 1.69% reported in 2020. However, the figure rose to 3.79% once counting the debts sold to Vietnam Asset Management Company.
- Commercial banks have however reported reduced bad debt in their 2021 financial reports. Bad debt at the Bản Việt Joint Stock Commercial Bank went down to 2.5% from 3% in 2020, TP Bank 0.9% from 1.14%, BIDV 0.81% from 1.76%.
- In addition, banks made strides in making provisions for bad debt last year. Vietcombank reported the highest coverage at 424%, BIDV at 235%, VietinBank at 171%, all well ahead of the schedule set by the SBV.
- Bad debt for 2021 was to increase from 2020 but a system-wide shock remained unlikely. As most banks reported an increased profit in 2021, they will be able to set aside additional funds to mitigate risks.