CREDIT QUALITY OF VIETNAMESE COMMERCIAL BANKS FROM THE PERSPECTIVE OF BAD DEBTS

Abstract

Bad debt is the most important financial indicator of the quality of bank
credit to customers. Therefore, in order to improve credit quality, the
management and handling of bad debts are top priority, most urgent in the
current unstable economy. The objective of the paper is to analyze the current
situation of credit quality of Vietnamese commercial banks through the
management and handling of bad debts. The subjects of study are Vietnamese
commercial banks in 2018 and 2019. The author combines qualitative research
methods, aggregates and processes data based on the bank's financial
statements. The study showed that the bad debt ratio tended to decrease in
2018, 2019 and forecast that off-balance sheet bad debt at VAMC will return to
"reunite" with the bank in 2020. From there, the author assessed the results. and
difficulties and challenges for commercial banks in dealing with bad debts in
order to improve credit quality