Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period.

Many listed banks witnessed weak performance of fee income growth in the first six months of the year due to the Covid-19 pandemic.

Increasing chartered capital is the most important task for the four state-owned commercial banks. If their CARs are lower than Basel II standards, they will have to restrict lending.

Banks, especially State-owned banks, are expected to increase their capital significantly this year as they are allowed to retain profits or pay dividend in shares instead of cash as previously.

The quality of bank assets has been affected by Covid-19, but the recovery of the banks will depend on their loan portfolios and asset structure.

Commercial banks are seeking more workers even though the economy has been hit hard by the pandemic. Recruitment notices say banks need both officers and medium- and high-ranking managers.

Financial reports released by some banks in the first quarter have reflected the adverse impacts of the COVID-19 pandemic on their business activities, with declining profits and rocketing bad debts.

Banks have cut wages of high-ranking executives to cope with the effects of Covid-19.

Many banks have adjusted business plans and set lower business targets as businesses, or bank clients, have been hit hard by Covid-19.

Because of the complex movements of Covid-19, banks have drawn up backup plans for credit growth and bad debt management.

Vietcombank’s completion of the sale of shares to foreign investors in early 2019 and BIDV’s action in late 2019 are expected to help attract foreign banks to Vietnam.

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.

Vietnam has for the first time witnessed businesses making high profit of $1 billion. Reaching new heights, Vietnamese businesses now cherish more ambitious plans.

Analysts say banking will be one of a few sectors to benefit from Covid-19 as the central bank may loosen the monetary policy to support the economy in crisis.

The Government has decided to allow Vietcombank and Vietinbank to increase their charter capital by 10 trillion VND (434.8 million USD) in the first quarter of this year, Deputy Prime Minister Vuong Dinh Hue said last month.

VND92 trillion is the amount of money that four state-owned banks, or the ‘big four’, have paid to the state budget since 2014.

Most large-cap firms have released full-year earnings reports for 2019 with 29 companies reporting a pre-tax profit of more than VND3 trillion (roughly US$130 million).

While Vietcombank leads state-owned banks in terms of profit, there are three candidates for the No 1 position among private banks.

All four major state-run banks, including Vietcombank, Vietinbank, Agribank and BIDV, are expected to qualify for Basel II standards in 2020.