Vietnam’s finance and banking sector has reduced its ratio of non-performing loans (NPLs) – including both NPLs owned by credit institutions and the Vietnam Asset Management Company – from 17.2 percent in 2012 to 6.7 percent at the end of June 2018.
The Government is directing ministries and agencies to raise capital for State-owned commercial banks through the use of dividends or share sales this year, Deputy Prime Minister Vuong Dinh Hue said at a recent meeting.
The Orient Commercial Joint Stock Bank (OCB) has successfully issued shares worth more than 900 billion VND (over 39.6 million USD) to increase its chartered capital.
The Vietnamese Government plans to reduce the cash payment proportion to less than 10 percent by 2020 and 8 percent by 2025, which can be done by expanding the network of automatic teller machines (ATMs) and points of sale (POS) nationwide.
Vietcombank will become the first major State-owned bank to apply Basel II standards, two years earlier than the deadline set by the State Bank of Vietnam (SBV).
Prosperous business performance and positive bank share price trends in the stock market are expected to help some commercial banks meet their capital increase deadline as required by the State Bank of Vietnam (SBV).
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) aims for increases of 15 percent in both mobilised capital and credit in 2018.
After years of receiving low dividend payout rate by banks, shareholders of many banks are now happy with the high rates announced at this year’s annual general meetings (AGMs) of shareholders.
The current development and future strategies of many local commercial banks are creating confidence about a sustainable growth of the banking sector.
The Orient Commercial Joint Stock Bank (OCB) has become the first Vietnamese bank to complete the implementation of a Basel II project, equipping it with the infrastructure of a modern and safe bank that meets capital, supervisory review and transparency requirements.
State-owned banks are finding it more difficult to increase charter capital, especially when they still have to pay dividends instead of keeping the money for this purpose.
State Bank of Vietnam statistics show that the average capital adequacy ratio (CAR) of the banking sector has been consistently falling since the beginning of this year.
The Government’s recent decision on the restructuring of credit institutions ensures that State-owned banks listed on the market no longer have to worry about dividend payout in cash, experts said.
The State Bank of Vietnam (SBV) has issued a new circular to prepare for the application of BASEL II standards in the domestic banking system.
Vietnam International Bank (VIB) has won the “Bank of the Year 2016” award, making it the first local bank to receive the prestigious award for two consecutive years.
The Orient Commercial Joint Stock Bank (OCB) has partnered with Fintek Company and Tess International Company in an anti-money laundering project under an agreement signed on November 9.
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) expects to increase its charter capital this year to become more competitive and prepare for Basel II implementation.
Large local banks, which are chosen by the State Bank of Vietnam (SBV) to apply Basel II governance standards, are trying to increase capital to meet the standards.
