Banking sector steps up handling, recovery of bad debts

Source from the State Bank of Vietnam (SBV)’s Binh Duong branch shows that the bad debt ratio of credit institutions in the province has tended to increase. By the end of January 2024, this rate increased to 1.28% compared to 1.26% in 2023. This was because the total outstanding debt in January 2024 decreased. However, in terms of value, bad debt in January decreased by 0.07% compared to the end of 2023, from VND 4.133 trillion to VND 4.130 trillion. In addition, there was decline in cash flow from operations of many businesses in the province, shrinking production-business activities and supply chains of raw materials and broken.

In the face of the situation, the SBV has issued guidance documents, including the Directive No. 01 on organizing the implementation of key tasks of the banking sector in 2024. The goal is that credit institutions continue improving credit quality, preventing and limiting newly arising bad debts...

Reported by Thanh Hong-Translated by Kim Tin