Vietnam banks pledge to support business sectors hit by nCoV
The central bank is willing to support liquidity for credit institutions, if needed, as they start providing financial support for the economy.
The central bank is willing to support liquidity for credit institutions, if needed, as they start providing financial support for the economy.
All four major state-run banks, including Vietcombank, Vietinbank, Agribank and BIDV, are expected to qualify for Basel II standards in 2020.
Total assets of commercial banks under state ownership accounted for 42.7% of the total in the banking sector, followed by joint stock commercial banks with 41.6%.
In 2020, the credit growth is expected to be in range of 13 – 13.5%, down from 13.7% last year.
Rising foreign investment flow in Vietnam has prompted overseas banks to expand operation in the country.
Bancassurance income is set to have much potential to grow both at sector-wide and individual bank level, according to a brokerage.
The circular lists cases that credit institutions are granted a reserve requirement waiver or a lower reserve requirement ratio.
The biggest support for the market is expected to come from the consistent policy implementation by the government to stabilize macroeconomic factors and encourage domestic firms to develop.
By the end of 2020, all commercial banks are required to meet Basel II standards, a condition for local lenders to expand their respective credit growth limit and increase registered capital.
Fitch analysts were upbeat about continued strong economic growth in Vietnam, which makes near-term stress unlikely and underpins their stable outlook for the banking sector.