Banking sector deals with VND70 trillion of bad debt

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According to NFSC, the bad debt ratio is 9.5% of the total outstanding loan balance. In spite of being three times higher than the under 3% rate forecasted by the State Bank of Vietnam, the ratio fell sharply from 11.5% in the beginning of the year. 

This year, pre-tax profit of the banking sector increased over 40% from 2016 and post-tax profit rose 44%.

The sharp increase in the profits is due to income from credit activities occupying about 79% of total net income. However, some commercial banks still met difficulties in balancing capital source/use, as well as high medium and long-term credit ratios./.