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VIETNAM - Central bank to focus on restructure of weak banks in coming year   DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

VIETNAM - Central bank to focus on restructure of weak banks in coming year

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VIETNAM - Central bank to focus on restructure of weak banks in coming year   Empty VIETNAM - Central bank to focus on restructure of weak banks in coming year

Post by lexie Sun Dec 18, 2011 9:59 am

December 18, 2011

Central bank to focus on restructure of weak banks in coming year

The State Bank of Vietnam (SBV) will focus on restructuring weak banks in the next year to ensure the liquidity in the entire banking system, while avoiding any bankruptcies in the sector.


At an economic forum on restructuring held by Nhan Dan Newspaper on December 16, Nguyen Van Binh, Governor of SBV said that 2012 will be the first year of the state bank's restructuring programme for credit institutions. The programme will last until 2020, he added.


A number of banks have showed bad performance. Binh added that this should be immediately addressed so the problem does not spread, adding that, in the long-term, the SBV will take further measures to ensure a stable financial system.


Binh was cited by Vnexpress as saying that, in 2012 the SBV will adjust interest rates to keep in line with the Government’s goals for curbing inflation. He also outlined the credit sector's priorities. Credit growth in the Vietnamese banking sector is forecast to be around 15-17% for the year. Priority for loans will be given to agricultural and rural development, export and small to medium-sized enterprises along with their supporting industries.


In the real estate sector, credit will be loosened for projects for resettlement areas and affordable housing projects, which can be completed within the year of 2012.


The national banking sector will continue on its current course of mergers and acquisitions at least through to 2013. This process is voluntary, but further bank mergers are expected so that they can remain competitive.


Between 2014 and 2015 Vietnam will form one or two large regional banks, according to Binh.


“In Southeast Asia, the big banks often have total assets of around USD50 billion. Meanwhile, in Vietnam, the bank with the most assets is Vietnam Bank for Agriculture and Rural Development, with USD25 billion,” Binh emphasised.


The governor said that in coming years, around 15 banks will likely account for 80% of the banking sector in Vietnam.




http://www.vietfinancenews.com/2011/12/central-bank-to-focus-on-restructure-of.html


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