A local bank employee counts money. Lenders are more confident about business prospects this year. – Photo dantri.com.vn

HA NOI (Biz Hub) – Banks were more confident about their business prospects this year, the State Bank of Viet Nam (SBV) announced on Monday, disclosing results of its recent survey.

Eighty-eight banks responded to the central bank's poll of 120 credit institutions and foreign bank branches in Viet Nam, taken between November 22 and December 10, 2013.

The lenders said factors directly affecting their business became more apparent in the fourth quarter of 2013 than in the third, and this trend was likely to continue in 2014. These factors included financial capacity, human resources, equipment, technology, risk management, as well as market demand, interest rates and exchange rate policies.

These factors would ensure improved performance by the nation's banks and promised a brighter outlook for the banking system's recovery this year, the SBV said.

Also, credit institutions said demand for loans and deposits continued to increase, with demand from individual customers and small- and medium-sized enterprises growing significantly. Most said they had reduced service charges in the last quarter and intended to maintain these charges in this quarter to attract customers.

Over half of the respondents said they expected the State-owned enterprise restructuring process would significantly ease risks for their customers.

Most said their liquidity stabilised and increased for money in both Vietnamese dong and US dollars, while hoping both deposits and outstanding loans would grow higher this year than last year, with growth expected at 10-20 per cent. They also believed they would see lower ratios of bad debt.

Sixty per cent of respondents said they would maintain current staff sizes, while 40 per cent said they were lacking employees and would recruit more this quarter.

"Survey results show that major trends on the banking – monetary markets are in line with Government directions and targets," the SBV said. – VNS