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Vietnam's banking system sees smaller bad debts

Source: Xinhua| 2018-08-30 12:14:19|Editor: Chengcheng
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HANOI, Aug. 30 (Xinhua) -- Vietnam's banking system reduced its bad debt ratio to 2.09 percent in late June from 2.46 percent in late December 2016, according to the country's central bank on Thursday.

Since the Vietnamese top legislature's resolution on handling bad debts of credit institutions on a trial basis took effect in August 2017, all credit institutions have handled bad debts of 138.29 trillion Vietnamese dong (6 billion U.S. dollars), said the Banking Supervision Agency under the State Bank of Vietnam.

The settlement of non-performing loans is also being accelerated to further lower the bad debt ratio.

By the end of June this year, all credit institutions had total charter capital of nearly 519.11 trillion Vietnamese dong (22.5 billion U.S. dollars), up 1.3 percent against the end of 2017, and up 6.3 percent compared with the end of 2016.

Meanwhile, they had combined equity capital of more than 720.43 trillion Vietnamese dong (31.3 billion U.S. dollars), up 9.1 percent and 21.1 percent against the end of 2017 and 2016, respectively, said the agency.

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