A query was submitted to the Government Portal by Mr. M.V. Quang regarding his issue with a financial company. Due to delayed payment on a loan, Mr. Quang was listed as a bad debt in Group 5 by the National Credit Information Center of Vietnam (CIC). However, on July 7, 2022, he fully settled the outstanding debt.
Recently, Mr. Quang has been seeking a mortgage loan from banks but has been repeatedly denied due to his bad debt record. Previously, if a customer had a bad debt with an outstanding balance of less than VND 10 million, CIC would stop providing information immediately after the customer settled the debt, thus not affecting their borrowing ability.
Mr. Quang asks: “Which authority has the jurisdiction to handle this matter?”
In response to this inquiry, the State Bank of Vietnam provided the following information:
According to data reported by the financial company, Mr. Quang was classified as a bad debt due to overdue payments with an original debt of VND 5 million. He settled this debt in the reporting period ending July 31, 2022.
Based on the provisions of Clause 1, Article 11 of the State Bank of Vietnam’s Circular No. 03/2013/TT-NHNN dated January 28, 2013, on the credit information activity of the State Bank “CIC will provide Mr. Quang’s bad debt history for a maximum of 5 years from the end of the debt. Therefore, CIC does not have a basis for deleting the bad debt history as requested by Mr. Quang.”
Although Mr. Quang has a history of bad debt, he has not had any overdue payments since July 31, 2022, and is currently classified as a standard debt by credit institutions. As a result, his credit score has improved significantly:
On the scoring date of July 22, 2022, he had 485 points and was ranked 8/10 (below average). By the scoring date of July 22, 2024, his score had improved to 571 points, ranking 6/10 (average risk).
CIC recommends that Mr. Quang continue to make full and timely payments to further enhance his credit score in the future.
To proactively check his credit information and score, and to access official credit products from credit institutions in the area, Mr. Quang can log in to his registered account on the CIC Credit Connect app or visit the CIC website for online support.
The Inspector General’s Report: Unraveling the High Rate of Non-Performing Loans at An Giang Development Investment Fund
The latest lending data from An Giang Province’s Investment and Development Fund reveals a worrying trend. In 2022 and 2023, non-performing loan rates surged to alarming levels. By the end of 2023, total outstanding debt had climbed to over 80 billion VND, with non-performing loans accounting for a staggering 43.6 billion VND – that’s over 54% of the total debt. This presents a significant challenge and underscores the urgent need for effective strategies to address this issue.
“Unveiling the True Extent of Non-Performing Loans in Private Banks: A Critical Analysis”
“There are some standout figures in the recently released SBV report on the private banking sector: average lending rates, foreign exchange transactions, credit growth, profits, non-performing loans, CAR, and more. These metrics paint a detailed picture of the industry’s health and performance.”
Sure, I can assist with that.
## SMEs Can Now Mortgage Loans of Up to 20 Billion VND Online
Small and medium-sized enterprises (SMEs) are buzzing about VPBank’s new policy, introduced in July. The bank now offers loans with a limit of up to 100% of the value of the secured asset, and the entire loan application and disbursement process can be completed online. This is a game-changer for businesses, offering a streamlined and efficient way to access much-needed capital. With this innovative approach, VPBank is supporting SMEs in a whole new way, and we can’t wait to see the positive impact it has on their growth and success.
Enhancing NIM: Tackling the Ongoing Challenge
Speaking to the Bank Times journalist, Dr. Le Duy Binh, Executive Director of Economica Vietnam asserted that restoring the net interest margin (NIM) to a higher level is a challenging task for the banking system. The immediate solution lies in focusing on optimizing operating costs, enhancing governance capabilities, accelerating digital transformation, and increasing the CASA ratio to improve NIM.
“Real Estate Credit Continues to Grow Positively”
“As 2024 commenced, the market witnessed a rebound, coupled with declining interest rates. This prompted banks to actively extend real estate loans, particularly for projects with sound legal foundations. “
