The Hanoitimes - The total capital shortfall of Fitch-rated banks could increase to US$6.5 billion if they were to also raise their allowance coverage to 5.0% of gross loans and Vietnam Asset Management Company (VAMC) special bonds, from 2.3% at end-2017. The Vietnamese banking system could face a capital shortfall of almost US$20 billion (9% of GDP) to meet Basel II implementation, scheduled for January 1, 2020, and to increase allowance coverage to a level that reflects underlying asset-quality problems, says Fitch Ratings. Banks are likely to step up capital issuance over the next 18 months, which could improve the credit profiles of rated banks if it results in a meaningful and sustained increase in capitalisation. However, a lack of depth in domestic capital markets may create challenges, particularly as some banks are close to or at the limit for foreign ownership. Basel II implementation is likely to require Fitch-rated banks to raise USD4.1 billion in capital, assuming they … [Read more...] about Vietnam banks have large capital needs ahead of Basel II: Fitch
Vietnam banks
Vietnam banks in race to join Asia top 100
The Hanoitimes - Assuming Vietnam`s top three state-run banks can maintain their respective growth rate of 5 - 10% in the next eight years, their total assets would be over VND1,500 trillion (US$63.95 billion), equivalent to those currently in Asia`s top 100 banks. Under the development strategy of Vietnam's banking sector recently approved by the prime minister, the country is expected to have at least 2 - 3 commercial banks in Asia's top 100 largest banks in terms of assets by the end of 2025. Illustrative photo. Last year, 15 Vietnamese banks were named in the Asian Bankers' AB500 ranking and survey of Asia Pacific's strongest banks by balance sheet. Among Vietnamese lenders, Bank for Investment and Development of Vietnam (BIDV) took the highest spot at 157th, followed by Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietinBank) at the 163rd and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietcombank) at the 188th. Those three … [Read more...] about Vietnam banks in race to join Asia top 100
Development strategy of Vietnam banking sector to 2025 approved
The Development Strategy of the Vietnam Banking Sector to 2025, with a vision to 2030, has been approved by the Prime Minister in accordance with Decision No.986/QD-TTg. Illustrative image - Photo: VGP The strategy aims to gradually increase the independence and accountability of the State Bank of Vietnam for the purpose of operating monetary policy and controlling inflation at an appropriate level consistent with the socio-economic development orientation in each period, and support macroeconomic stability and promote the goal of sustainable economic growth. It also aims to strengthen the institutional capacity, effectiveness and efficiency of the banking inspection and supervision by the State Bank; expand the scope of inspection and supervision to financial corporations in the form of parent company - in which the parent company is a credit institution; by the end of 2025, banking supervision and supervision must follow most of the principles of effective banking … [Read more...] about Development strategy of Vietnam banking sector to 2025 approved
Vietnam Bank for Social Policies reports positive half year results
Vietnam Bank for Social Policies has completed 67 per cent of its 2018 target by the end of June, signalling a successful year of helping impoverished families in Vietnam. Activities carried out by Vietnam Bank for Social Policies in the first half of 2018 Positive figures By June 30, the outstanding loans at Vietnam Bank for Social Policies (VBSP) stood at VND181.768 trillion ($7.8 billion), up 5.8 per cent from the end of 2017. More than 6.7 million impoverished families and other disadvantaged citizens are borrowing from VBSP. In this figure, VND160.837 trillion ($6.9 billion) is outstanding loans from credit programmes that have been approved by the government for national growth. This is 67 per cent of the target for 2018. In the first six months of 2018, VBSP has closely followed regulations and directions from the government, especially the State Bank of Vietnam, and collaborated with various government entities or different organisations to streamline and carry out a … [Read more...] about Vietnam Bank for Social Policies reports positive half year results
Is there a third investment wave in Vietnam banks?
VietNamNet Bridge - While some analysts note that a number of foreign banks have withdrawn capital from Vietnam banks, others see signs of a third investment wave from foreign investors. Vietnamese banks receive the third investment wave The first wave of foreign investment in the banking sector occurred in 2005-2008, when bank shares were traded at sky high prices at hundreds of thousands of dong per share. The second wave was seen in 2011-2014 with a number of outstanding deals such as the $60 million investment by Commonwealth Bank in VIB Bank in 2011 and the $40 million investment by IFC in An Binh Bank in the same year. The other big deals included Mizuho pouring $576 million into Vietcombank in 2012 and Bank of Tokyo – Mitsubishi buying a 20 percent VietinBank stake at $743 million in 2013. RELATED NEWS Anticipating high credit growth rate, banks predict huge profits 11 Vietnamese banks have combined total assets of $10 billion Thanh Lich … [Read more...] about Is there a third investment wave in Vietnam banks?