Low capitalisation levels are likely to remain a credit weakness for rated Vietnamese banks as rapid loan growth will make it challenging to raise capital adequacy ratios (CARs) in the next two to three years, according to Fitch Ratings.
Commercial banks and credit institutions in HCM City need to continue to restructure and strengthen control of credit quality to prevent a return to the days of high bad debt ratios.
The State Bank of Viet Nam (SBV) is planning to change its policy on reserve requirement ratios for credit institutions and foreign banks'' branches for the first time since 2011.
A share’s price/earnings (PE) ratio is a key way of assessing whether it is trading at fair value and therefore if it is a good buy or not. This week, our expat financial services expert Brian Spence explains why PE...
State Bank of Viet Nam''s (SBV''s) newly amended regulations on prudential ratios for the operation of credit institutions and foreign bank branches have provided significant relief to real estate investors.
The State Bank of Viet Nam (SBV) this week required its branches
nationwide to adopt stricter, more comprehensive measures to accelerate
progress in restructuring debt and resolving non-performing loans
(NPLs).
After two high credit growth episodes in 2007 and 2009, which led to
high non-performing loan ratios and damaged consumer confidence, Viet
Nam is now reeling from sluggish demand, according to a recent HSBC
report.
Vietnam equities have outperformed their emerging market peers by a wide
margin this year, and with the nation getting its economic house in
order, this trend is expected to continue into 2014.
Non-performing loans (NPLs) accounted for 5.99 per cent of the total
loans of HCM City-based banks in the first nine months of this year,
said Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam''s
HCM City branch.
Banks with non-performing loan (NPL) ratios of 3 per cent or more will
have to sell the loans to the Viet Nam Asset Management Company (VAMC), a
new group due to officially begin operations on July 9 this year,
according to a newly-issued...