NPL in Vietnam

Using the qualitative method, bad debt is debt that belongs to which debt group(s)?

You may choose more than one answer.

• Group 1

• Group 2

• Group 3

• Group 4

• Group 5

According to Circular 11/2021/TT-NHNN, banks must assess, classify debt, and set up risk provisions at least:

• Once a week

• Once a month

• Once every quarter

• Twice a month

Determine if this statement is TRUE or FALSE:

VAMC is a special enterprise with 100% capital owned by the State.

• True

• False

• 3 years ago it was like that, now it's different

Which of these is NOT an activity of VAMC?

• Buying bad debt from credit institutions

• Debt recovery, debt collection and management, sale of debt and collateral

• Restructure debt, adjust debt repayment conditions, convert debt into capital or borrower's equity

• Provide short and medium-term financial support to members experiencing temporary balance of payments difficulties

 What is the provisioning rate for debts in group 3?

• 0%

• 5%

• 20%

• 50%

• 10%

According to Circular 11/2021/TT-NHNN, the amount of general provision is calculated as:

• 0.75% of total predicted bad debt in the future

• 0.75% of total debt balance from group 1 to group 4

• 0.75% of total outstanding loan at the beginning of the fiscal year

• 0.75% short-term debt + 0.50% long-term debt

In what case(s) are banks allowed to use risk provisions? You may choose more than one answer.

• The customer is an organization that has been dissolved or bankrupt

• Customers are individuals who have died or are missing

• Debts are classified as group 5

• Group 3 and 4 debts that are worth 500 million VND or more

• When the customer refuses to repay the debt

Which are the two largest debt trading companies in Vietnam?

• VDT

• SBVD

• VAMC

• DATC

• PIMCO

Which bank has the highest NPL ratio in Vietnam by the end of the third quarter of 2023?

• VPB

• BaoVietBank

• VIB

• NVB

Answer explanation

Which bank has the highest bad debt coverage ratio in Vietnam by the end of the third quarter of 2023?

• VCB

• BIDV

• MBB

• TCB