Bankers in Vietnam are going from marble and plate glass to bars. One banking tycoon is jaiined for tax evasion and illegal lending.
Stae-owned banks have made risky oans to state-owned enterprises. Banks are often poorly managed and there is no oversight. It is said that bankers take loans for bribes.
Moody’s estimated that 15% of al loans and investments made by Vietnam’s banks were “problem assets.” Vietnam’s central bank reported 4.7%.
Eugene Tarzimanow of Moody’s sees the assets as a positiv step in cleaning the banks.