The road to recovery post-Covid-19 is full of risks for Asia’s banks. They need to innovate and expand their services to help rebuild the small businesses that provide a lifeline to Asia’s poor.
Fitch could revise the outlook on Vietnam’s banking sector and ratings back to stable from negative.
Local lenders are considering waiving interest rates of outstanding loans worth VND185 trillion (US$7.94 billion) for 34,350 customers.
Fitch Rating keeps the positive rating outlook for Vietnamese banks.
Foreign banks have decided to boost consumer finance loans as the business segment is forecast to maintain double digit growth this year.
The negative outlook reflects some ongoing risk of payment delays on some of the government's indirect debt obligations.
It is a rare combination where Vietnamese banks are growing fast and are quite profitable, said an expert at JP Morgan.
After the parliament disapproved a plan to use state funds to raise registered capital, state-owned banks will have to look for foreign investment to increase capital.
Most Vietnamese banks are still struggling to comply with the banking authority’s regulations related to digital transformation, particularly those concerning the management of third-party risks.