Vn Banks

VIETNAM BANKING PROFITABILITY AND PROSPECT Sacombank Securities Company, Ltd SBS November 2008 Research Vietnam Banking Profitability and Prospect executive director SUMMARY Vietnams banking perseverance has deep seen promising festering in terms of the arrive of banks, bill of loans and deposits and the diversity of products and serve. cite and deposits both grew rapidly, 35% per year on fairish, from 2002 to 2007. Commercial banking products and services also grew substantially in design with the overall yield of the economy. The Vietnamese banking industry has witnessed material utility in action during 2007. The ratio of non-performing loans (NPLs) as a share of all loans was reduce to close to 1.5% from 3% in 2006. The average return on assets (ROAA) and average return on righteousness (ROAE) for the sector was approximately 1.9%, and 17%, respectively. Average capital sufficiency ratios (CARs) of all banks were over the required rate of 8%. Vie tnams banking industry, though face current challenges and weaknesses, entrust benefit from its make strengths and opportunities. Near and long-run growth in the sector lead significantly be driven by the potential growth of the retail banking and the SME market, the consumer lending market and the mortgage market.

The banking industry will also likely see the beginning of a integration trend as acquisitions and mergers become a preferred scheme for growth. Effective organisation and risk management will sweep sufficient heed onwards since they are critical in delivering stable returns and financial backi ng robust governance and compliance processe! s. victimization OF BANKING INDUSTRY Vietnam banking industry has recently experienced rapid annual growth in terms of both the number and size of institutions. The come number of banks increased from 9 in 1991 to 86 in 2008. In 2007, total assets of the entire banking system exceeded VND 1,500 trillion, or cxxx% of GDP. This growth has been largely driven by...If you want to get a effective essay, order it on our website: OrderCustomPaper.com

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