The changes come into effect on Monday, the State Bank of Vietnam said on its website. The central bank said in its statement that the move was to help boost economic growth and keep inflation under control. The central bank in 2013 set up the Vietnam Asset Management Company to buy banks’ bad debt. While the asset quality of Vietnamese banks has improved, there is a risk some new loans could sour, according to a Moody’s Investors Service research note. Bad loans at Vietnam banks were 6.8 percent of total loans as of the end of 2016, Moody’s said.

Source: The Standard July 10, 2017 08:48 UTC