ANTD.VN - Sacombank lends to many independent customers but in reality it is investing capital in one business and one project.
The Government Inspectorate has just announced the conclusion on the implementation of the project to restructure and handle bad debts in banks in the 2013-2017 period.
In particular, regarding the handling of bad debts of credit institutions (CIs) according to Project 834, the Government Inspectorate pointed out a series of violations by banks in granting credit to customers.
Accordingly, the results of reviewing the bad debt situation according to the reports of credit institutions and checking the quality of some credit granting files at 5 commercial banks, namely Viet A Bank (VietABank), National Bank (NCB), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Bac A Bank (BacABank) and Saigon Thuong Tin (Sacombank), showed that the banks had many violations in the credit granting process.
It is worth noting that credit is concentrated on one customer and one project but "dodged" through lending to independent customers to avoid violating the provisions of the Law on Credit Institutions.
The forms used by these banks are: Lending to contribute capital according to investment cooperation contracts signed with project investors, essentially disbursing capital to investors to implement the project;
Lending to contribute capital to a subsidiary, buying back capital contributions of shareholders of a company owning a project belonging to the project, but in essence borrowing capital to establish a business to buy back a part of the project through the form of buying back capital contributions of the project enterprise;
Banks also lend to receive transfers and invest in the same project, but the borrower does not directly implement the project but borrows capital to transfer to the investor through the form of signing a principle contract on the transfer of subdivisions of the project.
The inspection showed that the credit granting had shortcomings and violations in assessing loan conditions and disbursing when the project did not have complete legal documents, financial reporting data was incorrect, the use of actual capital invested in the project could not be controlled, the project was slow to implement, and there were potential risks.
According to the report of the State Bank of Vietnam (SBV), as of October 10, 2021, of the above customers, 17 customers have made full payments, 1 customer has transferred off-balance sheet and 1 customer has outstanding debt.
According to Techcombank's response on July 11, 2023, all credit facilities mentioned in Official Dispatch No. 509/QD-TTCP dated June 15, 2018 of the Government Inspectorate, to date, have no outstanding debt at Techcombank.
The Bank has continuously reviewed, monitored and closely followed up on credit facilities to ensure that there are no risks at Techcombank and that it complies with the regulations of competent authorities.
All review and appraisal results are reported to the State Bank and competent authorities.
Sacombank lends 9 businesses more than 48.5% of their equity to invest in the same project.
Checking the credit application files of 16 customers as of August 31, 2018, the outstanding debt was VND 15,218 billion, accounting for 6.2% of Sacombank's total outstanding debt, the Government Inspectorate also discovered many shortcomings and violations in the appraisal of loan conditions; performing debt classification not in accordance with regulations...
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Sacombank lends nearly half of its equity to 9 customers |
It is worth mentioning that Sacombank has lent to 9 businesses with outstanding loans equal to 48.52% of the bank's equity, up to VND9,262 billion.
These enterprises include Him Lam Thu Do Joint Stock Company, Hong Bang Investment Joint Stock Company, Bao Loc Construction Investment Joint Stock Company, Nam Thang Investment and Trading Service Joint Stock Company, Cong Phuc Construction Trading Joint Stock Company, Bao Tin Infrastructure Joint Stock Company, Viet Phu My Construction Investment Joint Stock Company, Viet Ha Joint Stock Company and Hiep An Joint Stock Company.
The above enterprises borrowed capital, then received transfers and invested in the same project - the Saigon Binh An urban area project.
According to the Inspection Conclusion Notice, these 9 enterprises have no related relationships according to the provisions of the Law on Credit Institutions, do not directly implement the project, but borrow capital to transfer to a third party through the form of signing a contract in principle on the transfer of subdivisions of the project.
Meanwhile, the bank only assesses the financial capacity of the borrower instead of the project implementation unit. This leads to potential risks for the bank because at the time of inspection, the project is facing difficulties in land law, increasing interest costs, affecting credit quality and business results of Sacombank.
Not only that, the loan records of the 9 customers mentioned above had many shortcomings and violations such as: Some customers provided data to Sacombank that was different from the data provided to the tax authorities.
Sacombank has also not strictly controlled the fact that a number of customers borrowed capital from this bank and another bank to disburse for the contract to transfer subdivisions of the Saigon Binh An urban area project of SDI Company.
The post-loan inspection has not yet fully recorded and assessed the production and business activities and legal difficulties of the project; risks and inadequacies in determining the legality of collateral used as collateral for loans of the 9 customers mentioned above while the project does not have complete legal documents on ownership...
VietABank: Lending when the project is not eligible for capital mobilization
Inspecting 14 credit applications with a total outstanding debt as of August 31, 2018 of VND 6,510 billion, accounting for 17.28% of VietABank's total outstanding loans, the Government Inspectorate found violations similar to those of the above banks, such as: appraisal and approval of loans when the project did not have sufficient legal documents, and the investor did not meet the conditions to implement the project;
Inaccurate appraisal and determination of revenue and costs for implementing investment projects; Debt not classified according to regulations (debt of Vicoland Construction and Housing Development Corporation, Binh Thuy Lam Dong Electricity Joint Stock Company, according to regulations, must be transferred to groups 4 and 5 but are still kept in group 1 by the bank).
In addition, the bank also lent capital to 10 enterprises, with outstanding loans of VND4,860 billion, according to investment cooperation contracts signed with project investors. However, the nature of the disbursement is to disburse capital to investors to implement the project, while the projects do not have sufficient legal documents and are not eligible to mobilize capital; the investment cooperation contracts are not legally valid according to regulations...
NCB: No provision for debt sold to VAMC
At NCB, the Government Inspectorate inspected 6 credit files, including 4 files with outstanding debt as of August 31, 2018 of nearly VND 1,700 billion (accounting for 4.94% of the Bank's total outstanding debt) and 2 credit files with debt sold to VAMC with a total outstanding principal at the time of debt sale of more than VND 687 billion.
The results show that NCB has appraised and approved loans for some businesses when customers do not meet the loan conditions.
This bank also lends when the collateral has not been registered for secured transactions, has not been periodically re-evaluated, the collateral is stocks but there is no basis for valuation...
BacABank: Lending to many TH family businesses when they do not meet the conditions
Checking the credit records of 11 customers, accounting for 11% of BacABank's total outstanding debt, showed that this bank had lent to a series of "TH" family businesses but had not met the conditions on feasibility and project efficiency when approving loans (TH Food Chain Joint Stock Company, TH Dairy Food Company, TH Milk Company, Nghe An Northeast Raw Material Development Company, TH Pharmaceutical Company...).
In addition, the bank also lends to customers who are subject to loan restrictions according to BacABank's regulations (Hung Vuong Hue Company Limited)...
Regarding collateral, this bank has approved unsecured loans for a number of loans while customers' financial situation is difficult, business results are losing money (TH Food Chain Joint Stock Company, Green Technology International Import-Export Joint Stock Company; TH Milk Joint Stock Company; International Supply Chain Joint Stock Company, Nghe An Northeast Raw Material Development Investment Joint Stock Company).
In addition, for the above enterprises, the secured assets have not been registered for secured transactions as prescribed; the secured assets are debt claims but the financial situation of the party with payment obligations is difficult, business results are losses...
During the loan process, there were some periods when customers were late in paying their debts but BacABank did not change the debt group.
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