Bank in 24 holes in 5 months

 
The difference between income from accumulated spending the first 5 months of 2013, the entire banking system was only 18.200 billion, down sharply from the same period last year, of which 24 units at a loss.


    Executive Report on monetary policy in the first 6 months, the State Bank said that in the first five months of 2013, although the business results of the system is improved compared with 2012, but continued to decrease over the same period the previous year.

    

    The difference between income from accumulated spending 5 months of 2013, the new system reached 18,200 billion, with 109% of revenues are spent 5 months of 2012, but only by 88% compared to 2010 and 61% compared with 2011.
    

                                 24 banks make losses in the first 5 months. Photo: Hoang Ha.

    

    Even according to the State Bank, in the first 5 months of this year, with 24 out of 124 credit institutions are the difference between revenues and expenditures music. The remaining 100 credit institutions with interest but in the interest rates that 57 units over the same period the previous year.

    

    According to the State Bank, if not made by decision 780, the credit institution is required to establish additional 14,400 billion, while the revenue expenditure gap of the system is only 3.800 billion.

    

    Business results due in part to declining interest rate differential between the input and output current of the bank is relatively low. If cost does not include the provision for credit losses, the difference is 3.03% if excluding provision for credit losses fell to 1.93% difference, down from 2.33% last year in 2012.

    

    Besides the decline in business activity, the State Bank also warned organizations some credit risk. First, run the risk of interest rates which remain hidden, especially derived from a number of weak banks.

    

    Next there is the risk associated with investing in bonds issued by the release of economic organization (corporate bonds). In 5 months, outstanding loans grew only 2.87% lower than the end of 2012, the investment in corporate bonds has risen 4.14%.

    

    According to the State Bank, in the context of difficult trading, investment corporate bonds will increase the risk to the bank because this funding is focused primarily on business development and real estate accounted for more than 50%, or for the purpose of increasing scale, debt restructuring accounting for 30%.

    

    In addition, the State Bank warns of downward trend which many credit institutions led to the ability to cope with risks of the bank signs of decline.