Vietnamplus

Despite the central bank’s tightened monetary policy, many banks reported good business performance last year thanks to improved bad debt resolution and rising income from services.

The State Bank of Vietnam (SBV) will likely continue its tightened monetary policy in the remaining months of the year after its decision to strictly control lending to high risk sectors in the third quarter didn’t adversely affect the country’s economic growth, according to experts.

Up to 75 percent of credit institutions expected better results in the second quarter of this year, while 84 percent hoped their business performance throughout 2018 to improve further compared to 2017.

Several commercial banks have in the early days of 2017 posted positive business performance for 2016, with profits much higher than the previous year.

High credit growth has helped many commercial banks to gain impressive profits this year despite having to provide a larger amount for provisional fund.