Solution for Reducing Bad Debt at National Citizen Commercial Joint Stock Bank in Vietnam

In recent years, although the process of handling bad debts in the banking industry has achieved some successes, it also has many limitations and faces many challenges in terms of debt handling resources and legal framework. Handling secured assets, the debt trading market is not yet developed. In particular, in recent times, this activity has encountered more difficulties, due to the "frozen" real estate market and the majority of corporate customers lacking output. The "freezing" of the real estate and corporate bond markets has had a negative impact on the asset quality of the banking industry. At the same time, banks also face the risk of increasing bad debts after the time to restructure debt repayment periods for customers affected by the covid 19 epidemic according to Circular 14/2021/TT-NHNN ends. Among them, National Citizen Commercial Joint Stock Bank (NCB) is the bank with the fastest growing bad debt, this is an alarming situation for NCB Bank. This article studies the theory of bad debt, the current situation of bad debt at NCB Bank and to solve the problems raised, it is necessary to synchronously deploy solutions to create favorable conditions for handling bad debt at the bank NCB.