2:41:29 PM | 16/11/2005
Bad debts of commercial banks in Hanoi are surging in recent times, accounting for 7.5 per cent of total outstanding loans, a local newspaper reported.
Some experts said that bad debts have increased sharply from September because the banks in the city have poor credit quality rising from the old medium- and long-term loans for the State-owned projects without mortgages.
According to the State Bank of Vietnam, Hanoi–based banks have bad debt ratios of only 4 per cent (under international standards applied on bad debt classification and risk reserves) by the end of September.
As of October this year, all commercial banks here posted total outstanding loans of VND103 trillion (US$6.5 billion), a rise of 17 per cent from the beginning of this year. Meanwhile, their deposits reached VND186 trillion (US$11.8 billion), up 15.7 per cent from the earlier in the year.
Vietnam Economic Times
Vietnamese
