Why banks "fear" NPLs?

- The commercial banks (banks) are treated aggressively bad debt, especially the debt risk of capital loss. There have been many problems, difficulties arise that bank officials could hardly recover the debt. Lawyer Nguyen Hoang Trung, chief lawyer and brother Hoang Trung (Hanoi), share of problems.

Sir, over time, banks are aggressively handle bad debt, but the results are modest. He said the reason why this?


In fact, the handling of bank debt has many problems related to policies, the borrower, the bank officer's career, collateral values ​​down ... First of all, it concerns mechanism, the debt settlement regulations of the State Bank of Vietnam (SBV) and the internal regulations of the banks.


Previously, the rate that banks NPLs Decision of SB 493, the 2012, Decision 780 was born, allowing banks to restructure debt (group remains debt) to customers. By early 2013, the SBV issued Circular 02 classification tighten, debt settlement, and a few months later, the delayed application period by 1 year. Because of constantly changing policies should be embarrassed banks in debt settlement.


Second, the economic downturn has great influence on the processing of loans. Tens of thousands of loss-making enterprises, bankruptcy, unable to pay debts led to the bank. The bank debt tightened hard, arresting assets of the business.


Third, even if the customer voluntarily hand over the collateral property values ​​have plummeted, causing insufficient to repay banks reluctant to handle. In the past, banks have reduced risk by asset valuation in accordance with only 70% of the market and 70% maximum loan value of the assets (ie, only about 49% of the lending market value of the assets). But until now, property prices even decreased to about 20-30%. If the sale of bank assets, they can not recover enough capital, but also customers no assets or collateral assets elsewhere.


 

                                        Lawyer Nguyen Hoang Trung, chief lawyer                                               
                                                  Hoang Trung and You (Ha Noi)


Therefore, banks must carefully consider whether or not to handle security properties. If you leave the value of the book is still sufficient to ensure that debt and interest has arisen. But right treatment, the bank will lose capital and provisioning to higher risk. Moreover, the book will reveal the loss, Loss and violations of workers ...


Why banks do not dare to arrest aggressive, sale of collateral to debt collection?


This is due to the limited jurisdiction of the bank. As a rule, when dealing with debt, banks are allowed to access collateral, but does not apply coercive measures, seized property. Unless otherwise judgment of the competent authorities.


In fact, only when the debtor voluntarily handed over the new banking assets are handled. If not, the bank must sue in court to declared distraint, sale of assets. This process is complicated because the court must go through many levels, the processing, labor-intensive, but not necessarily the cost of debt collection. For example, cases 7-8 business bank siege in Hanoi recently to collect debts. They guard outside, do not dare break into starting assets.


Before the debtor ing flows, many banks had to use the function held debt collection (legal) or submit an application to the police investigation, verification fraudulent appropriation of assets ... But in reality, these drastic measures are not effective.


Sir, there are many bad loans in violation of bank officials. The handling of bad debt will involve many officials, many of the banks. Is this what "sensitive" make bank loans difficult to handle?


Indeed. A loan must go through several stages, involving many levels, many officials (officials credit appraisal, risk of loan approval ...). A stitch done wrong will affect many other stage and all the materials are responsible banks have dared to "expose" the non-violation? This is a very large obstacles for handling bad loans related to wrongdoings. Most banks do not give authority to investigate and clarify. Unless, Office or SBV inspectors discovered, request to transfer the case to the police handling.


At banks, trading room level, where direct branch lending. To minimize risk, banks have tightened lending by establishing centralized appraisal department at Head Office. However, the evaluation was primarily on records and papers. Therefore, to facilitate customers, bank officials falsified records, leading to uncontrollable risks later. And when the risk occurs, capital losses, the bank and the shareholders suffer.