The State Bank of Vietnam has ordered all commercial lenders in the country to report on their real estate loans as concerns rise about growing bad debt levels at many banks.
All local and foreign banks, except policy lenders, are required to submit their reports by the end of Wednesday, the central bank said in a statement, noting that lenders will be held responsible for accuracy of the information.
The State Bank of Vietnam earlier this year asked commercial banks to cut lending for non-manufacturing sectors, including real estate and stock market, to 16 percent by the end of the year.
News website VnExpress reported last Friday that banks in Vietnam have tightened lending to the real estate sector. However, even major banks have reported growing bad debts.
State-owned lender Agribank, for instance, announced bad debts of 6.67 percent of its total lending, of which real estate loans accounted for a large part.
Other large banks including Vietcombank, Vietinbank and BIDV have either reported higher bad debt levels or announced plans to restructure their loans, VnExpress said.