... allocation processes (connected lending) without regard to the profitability and viability of the projects. 2.2. Implications for Vietnam From the lessons mentioned above, Vietnam has promulgated ... specific provision for each debt group are as follows: Group 1: zero percent, Group 2: five percent, Group 3: twenty percent, Group 4: fifty percent, and Group 5: one hundred percent. 13 ... adverse macro shocks. For this reason, it is better to pursue a combination of macro and micro approaches to explain bank failures (Hermosillo, 1999). Under the microeconomic approach (bank-specific...