Illustrative image (Source: thoibaokinhdoanh.vn) HCM City (VNA) - Along withpromotion programmes, banks have been expanding their networks in an aim toreach their annual targets.
In recent months, more bank transaction officesand branches have opened to welcome both individuals and enterprises ascustomers.
For instance, the An Binh Commercial Joint-StockBank has opened 11 branches and transaction offices in Da Nang and theprovinces of Lang Son, Nghe An, Binh Duong and Gia Lai.
Bac A Bank, by the end of last quarter, hadexpanded to include 100 transaction offices in 20 province and cities. TP Bankalso plans to open more offices in provinces and cities nationwide.
A leader from An Binh was quoted as saying in NguoiLao Dong (The Labourer) newspaper that expansion was one of the most importantsteps in becoming a leading bank in the retail market.
An expert told the newspaper that estimatedgrowth of the national credit market this year would be 17-18 percent againstlast year, if growth increases by 3 percent per month in the last few months.
He said this was a good time for banks to expandand introduce promotions to reach their year-end targets.
As the banking system is too small to fully meetdemand, expansion would improve service quality at banks, he added.
The representative from An Binh Bank said therewas strong demand for bank expansion, as this is a traditional channel toapproach customers in all regions of the country.
Moreover, demand for lending at the end of ayear is very high, prompting banks to expand to serve more customers.
However, with the opening of more branches andtransaction offices, risks can increase as customers worry that service qualityand technology will be inadequate. Human resources and management skills maynot be ensured as well.
Experts, however, said there was no need forconcern as regulations on controlling expansion in the banking sector, in whichbanks must show profits and have no more than a 3 percent bad-debt ratio, wouldlower the risks.
Bank expansion will help improve quality andcompetitiveness as well as increase each bank’s market share, according toexperts. — VNA
VNA
