A senior Vietnamese official yesterday warned of 'big problems' in the country's fledgling banking sector but insisted there was no danger of the system collapsing. Vu Mao, permanent secretary of the National Assembly, said the introduction of new banking laws had been delayed to allow the draft legislation to be strengthened. 'There are big problems but we must not exaggerate the situation,' Mr Mao said. 'You may be aware of the crisis in Albania. We do not want to face this consequence'. Two draft banking laws were next week due to be put before the National Assembly but now will not be in place for at least six months. Concern for the banking sector has increased as many are believed to be saddled with massive debts following years of ill-advised and politically motivated loans. The problems were further highlighted when a private bank failed to meet the payment deadline on a letter of credit worth nearly US$3 million, and again this week when two leading businessmen were arrested in Ho Chi Minh City over a massive bank loan scam. Banking analysts are now warning of mounting problems with bad loans among some of Vietnam's 50 non-state banks. Estimates of bad loans have reached as high as $1 billion. Vietnam's biggest corruption case earlier this year raised questions about loan supervision. Directors of the state company Tamexco acquired dollar loans from government banks while driving their firm into bankruptcy with debts of $40 million.