Mr. Le Quoc Ninh - CEO of Mcredit cum Chairman of Consumer Finance Club attended and presented at the conference “Overcoming consumer lending difficulties – Clearing black credit” organized by VTV Digital on October 31, 2023. At the event, Mr. Ninh shared the difficulties in the context of high bad debt levels and proposed practical solutions accordingly.

Talking about difficulties, Mcredit CEO said there are 2 reasons leading to this situation: Financial companies are labeled the same as black credit institutions and customers intentionally repudiate debts and some customers repay late making it difficult to finance companies.

Regarding solutions, Mr. Le Quoc Ninh proposed:

• The most fundamental solution is policies that help revive the economy; monetary and fiscal policies to support businesses and people, thereby helping to recover the consumer market.
• Authorities need to strengthen communication activities about official consumer credit, clearly distinguishing it from black credit activities.
• Local authorities support debt collection and financial company personnel to approach customers to find solutions, instead of negative and even prohibitive solutions as the current situation. At the same time, coordinate to deter those who deliberately repudiate debts, despite having money.
• MB Shinsei representative also asked the State Bank of Vietnam to complete regulations to ensure compliance with the specific operations of consumer finance companies. Especially is research into building a legal corridor for the management of professional debt collection services.
• Mr. Ninh also proposed that the State Bank apply a separate bad debt threshold for financial companies which is different from commercial banks. It is suitable for the specific operations and lending to people with average, low, unstable income... of financial companies.

Read the full article at: https://vtv.vn/lanh-te/cho-vay-tieu-dung-duoi-suc-vi-khach-bung-no-vay-20231031113203788.htm?fbclid=IwAR2PobuZgsC9_BNvykD2hFOWEkFFam9nGIxQ5C5tEnp__sLCHRNKXt6GXMk