, Vietnam
100 views
Photo from Pixabay

Vietnam banks may face challenges in paying back real estate loans: S&P

7% of Vietnam banks’ loan portfolios come from property loans.

Banks are expected to handle mortgage loans well, but there might be challenges with commercial real estate loans, comprising around 7% of Vietnam banks' loan portfolios, told S&P Global in a report.

In a worst-case scenario, sector-wide nonperforming loans (NPLs) could potentially increase to approximately 4.5%, as per S&P's preliminary calculations.

Vietnamese property developers continue to face difficulties in repaying debt due to the government's crackdown on the rapidly expanding sector in 2022. 

The resulting property downturn and price correction pose a potential risk to the banking sector. 

ALSO READ: SG incumbent banks unlikely to take hit from neobanks' deposit cap raise: Fitch

However, recent interest rate cuts and forbearance measures are expected to help alleviate the impact of these challenges.

"We believe the strains will be manageable for the banks." said S&P Global Ratings analyst Ivan Tan.

 

Follow the link s for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Philippine central bank eyes AI rules for banks
Artificial intelligence should not diminish banks’ responsibility to uphold data privacy.
Banking Technology
Westpac appoints Kate Dee as chief people officer
She has been the chief people officer of Bupa Asia Pacific since 2018.
Retail Banking
SMBC inks MOU to explore commercialization of stablecoins
They will explore technical, regulatory, and market infrastructure requirements for it.

Exclusives

Philippine central bank eyes AI rules for banks
Artificial intelligence should not diminish banks’ responsibility to uphold data privacy.
Banking Technology
RCBC boosts rural presence with ATM Go
The service, which allows cardless transfers, is now available in all Philippine cities.
BCA superapp drives digital transaction growth
Inter-account transfers were the most widely used service, followed by virtual payments.