Bank losses can threaten entire system: Deputy Governor

August 24, 2023

HCMC – While a company going bankrupt can impact hundreds of employees, the losses incurred by a bank can potentially lead to a collapse in the entire banking system, said the central bank’s Deputy Governor Dao Minh Tu. Although there was a notable improvement in credit growth in June, the rate was still notably lower compared to the same period in the previous year. Recent credit growth rates for the economy were recorded at 3.03% in April, 3.27% in May, and 4.73% in June. It is evident that credit growth decelerated and even turned negative in July, following a positive recovery surge in June. Nonetheless, in a scenario where struggling businesses face losses due to slow sales, bank losses could trigger wider repercussions throughout the economy, Tu warned.

The source of this news is from The Saigon Times