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 pains has deep seen promising suppuration in terms of the spot of banks, bill of loans and deposits and the diversity of products and service. 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 all overall suppuration of the economy. The Vietnamese banking industry has witnessed material utility in execution of instrument during 2007. The ratio of non-performing loans (NPLs) as a share of all loans was decreased to well-nigh 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 re quired rate of 8%. Vietnams banking industry, though liner current challenges and weaknesses, entrust benefit from its make strengths and opportunities. Near and semipermanent product in the sector lead significantly be driven by the potential growth of the retail banking and the SME market, the consumer bring market and the mortgage market.

The banking industry will also belike see the beginning of a integration trend as acquisitions and mergers become a preferred scheme for growth. Effective governing and risk management will sweep sufficient maintenance onwards since they are critical in delivering stab le returns and reinforcement robust governa! nce and compliance processes. 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 sufficient essay, order it on our website: OrderCustomPaper.com

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