Latest News about banking sector
Within five years from the day the FTA takes effect, Vietnam pledges to consider European credit institutions’ proposals to allow them to hold up to 49 percent of shares in two Vietnamese joint stock banks.
Though mergers and acquisitions in Vietnam’s banking sector have ballooned recently, tie-ups between foreign and local lenders are not without their drawbacks.
2019 witnessed low credit growth rate.
2019 has been a good year for the banking sector. Most commercial banks performed well with profit results exceeding the targets set earlier in the year.
A major proportion of bank loans are provided for the business community, particularly the private sector and individuals.
Vietnam is committed to opening the financial market to foreign investors, particularly in financial services.
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Ensuring information security is increasingly important as more online transactions are made. However, the budgets for information security allocated by financial institutions remain modest.
The total assets of commercial banks under state ownership accounted for 43.4% of the total of the banking sector, followed by joint stock commercial banks with 41.4%.
Growing attractiveness of Vietnamese banks' shares is thanks to a positive revamp and strong outlook of the sector, particularly as Vietnam is accelerating global economic integration.
Several local banks have reduced their interest rates in recent days, going against the banking sector’s general year-end trend of increasing rates to boost earnings.
The banking sector had made considerable headway into settling bad debt, restructuring credit institutions and developing the banking system two years since the National Assembly issued a resolution on the industry.
With great advantages being held by foreign banks, Vietnamese banks find it difficult to compete.
Many M&A deals in the banking sector have wrapped up recently amid continued influx of foreign investment in Vietnam.
Initial encouraging results have occurred after efforts were made to reduce the need for capital from banks where the state holds the controlling stake.
The gap among commercial banks is wideneing with top-tier banks leaving others far behind. However, they are not problem-free.
The banking sector reported a credit growth of 7.33 percent in the first half of this year compared to the end of 2018, Governor of the State Bank of Vietnam (SBV) Le Minh Hung said.
Though there remains six months, some banks have almost used up the assigned quota for the whole year, and experts said it would be difficult for the banks to get an expansion approval from the State Bank of Vietnam.