As of December 31, the ratio of bad debts in total outstanding loans of Hanoi’s banking sector stays at 1.91% of the total outstanding loan, ensuring the liquidity and safety operation of credit institutions, according to Director of the State Bank of Vietnam – Hanoi branch Nguyen Minh Tuan.

Bad debt ratio in Hanoi's banking sector set to remain low at 1.91% in 2020. Photo: Cong Hung.

Total capital mobilized by credit institutions in Hanoi during the period is estimated to increase by 12.91% and total outstanding loans by 9.58% against the same period of last year, Mr. Tuan noted.

Since early 2020, banks in Hanoi have been providing credit packages with low interest rates for customers in fields of manufacturing and businesses. Amid the Covid-19 pandemic crisis, the banking sector has responded to the government’s call in putting in place measures to support customers and businesses affected by the pandemic, including restructuring of debt payment schedule, delay or waiving of interest rates for existing loans, among others.

“The State Bank of Vietnam – Hanoi branch is committed to ensuring sufficient capital to support Hanoi’s economic development,” Mr. Tuan suggested.

Along with the efforts, the agency will put efforts on resolving bad debts and maintaining smooth operation of the banking system, he added.