Bad debts dampen M&A boom in banking industryAs Resolution No.42/2017/QH14 on the pilot settlement of credit institutions’ bad debts is enacted, it is hoped that bottlenecks for mergers and acquisitions (M&A) activities in the banking industry will be removed and more M&A deals will be implemented soon. UOB requested to buy the entire bank, including its bad debts, however, at the time, Vietnamese regulations did not have any mechanism to provide guarantee for these bad debts. “Before acquiring a weak bank, foreign investors should come up with ways to resolve bad debts,” Tho said. Recently, the National Assembly issued Resolution No.42/2017/QH14 on the pilot settlement of credit institutions’ bad debts. Not only acquiring weak banks, foreign investors are also hunting for attractive financial companies.

Source: VietNamNet News August 10, 2017 08:44 UTC