More Vietnamese banks to undergo restructuring

Due to weak liquidity.

This is the justification of the State Bank of Vietnam on expanding the list of banks to be restructured.

GP Bank, Navibank, Trust Bank and Western Bank would be added into the list of the banks to undergo the restructuring from now until the end of 2012.

The reports released by the banks show that their bad debt ratios are just around two percent of the total outstanding loans. However, the central bank’s inspectors and independent auditors have found out that the bad debt ratios of the banks have reached tens of percent.

A bank has reportedly had the bad debt ratio reaching the record high of 60 percent and had lost the chartered capital.

The four banks still have not found optimal restructure solution. However, it is certain that they must undergo the restructure process right in 2012.

Meanwhile, the State Bank of Vietnam has also informed that it would submit to the government the plan to set up a national debt trade company in mid-November. The plan would help accelerate the bank restructuring process.

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