BANKS’ PROVISION AND BAD DEBTS CLEARANCE IN THE FIRST HAFT OF 2020

Acting to the Covid-19 outbreak impact on credit quality, Vietnamese banks have actively raised the provision expenses for credit losses in the first haft of 2020.

Based on the 1st haft financial statement of banks, we have observed some movement in the sector:

 – The divergence of loan loss provision expenses growth between state-owned bank (SOBs) and Joint Stock Commercial Bank (JSCBs) groups.
 – Banks accelerated to clear bad debts, unfreezing the pressure on NPL ratio.
 – Loan loss provision coverage ratio was maintained relatively low.