Vn Banks

VIETNAM BANKING PROFITABILITY AND PROSPECT Sacombank Securities Company, Ltd SBS November 2008 Research Vietnam Banking Profitability and Prospect executive director SUMMARY Vietnams banking industry has thick get togethern promising growing in terms of the number of banks, file of loans and deposits and the diversity of products and services. Credit and deposits some(prenominal) grew rapidly, 35% per year on fairish, from 2002 to 2007. Commercial banking products and services in any case grew substantially in objective with the overall suppu ration of the economy. The Vietnamese banking industry has witnessed material avail in performance during 2007. The ratio of non-performing loans (NPLs) as a portion of all loans was reduced to nigh 1.5% from 3% in 2006. The ordinary return on assets (ROAA) and intermediate return on business (ROAE) for the sector was approximately 1.9%, and 17%, respectively. Average capital enough ratios (CARs) of all banks were over the mandatory rate of 8%. Vietnams banking industry, though facing trustworthy challenges and weaknesses, entrust benefit from its draw strengths and opportunities. Near and long-term growing in the sector forego significantly be determined by the potential ripening of the retail banking and the SME market place, the consumer lending market and the mortgage market.

The banking industry leave behind also likely see the beginning of a integrating trend as acquisitions and mergers choke a preferred dodge for maturation. Effective governance and danger management will jibe sufficient attention frontwards since they are critical in delivering stable returns and supporting cast-iron governance and compliance processes. victimisation OF BANKING INDUSTRY Vietnam banking industry has recently experient rapid annual growth in terms of some(prenominal) the number and size of institutions. The succeed number of banks increased from 9 in 1991 to 86 in 2008. In 2007, total assets of the wide banking system exceeded VND 1,500 trillion, or 130% of GDP. This growth has been largely driven by...If you want to get a full essay, order it on our website: Ordercustompaper.com

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