The ratio of bad debt increase meant that credit risks increased that lead to loss of the ability to recall the original capital of the Bank. The ratio of bad debts at Asian banks-Tan Binh branch tend to increase over the years (2010-2012), as of 2010, the ratio of bad debt is only 1%, while in 2012, that number was up to 2.87%. The cause of the bad debt ratio is due to the increase in the economy in recent years having a lot of difficulty, the decline of the economy impact on all economic sectors, the huge impact this critical to the completion of the obligations to the Bank's customers.
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