Tag: Banking industry

Blockchain technology will drastically change the future of the banking and finance industry by bringing a host of benefits in development.

Viet Dragon Securities Company believes the current situation in the banking industry provides a basis for further development.

Banks have been permitted to increase their charter capital and this has had a positive impact on the banking industry in general and banking stocks in particular.

The Governor of the State Bank of Vietnam, Nguyen Thi Hong, issued a tough message on August 11 about the credit growth limit and stabilizing the macro-economy. She also said the SBV and the banking industry in general share the difficulties facing businesses and there are many policies in place to exempt and reduce interest rates and fees for businesses and individuals, totaling about VND50 trillion ($2.17 billion).

On August 4, addressing a gathering for “Banking Industry Digital Transformation Day”, Prime Minister Pham Minh Chinh set six tasks for the industry in digital transformation, including building, testing, and applying a new legal framework for financial technology development; stepping up investment in and the development of shared infrastructure; promoting international cooperation; and receiving new technologies.

Latest update on the banking industry outlook from SSI Research notes both pros and cons.

In a recent publication from Vietnam Report, many analysts participating in a survey said the “shadow” cast by the pandemic has receded and largely given way to a brighter picture being seen in the banking industry over the course of the second half of 2022. Respondents, however, also pointed to a series of “gray areas” that the banking industry must pay attention to.

The performance of Vietnam’s banking industry will improve as Covid-19 gradually passes, according to the latest report from credit ratings agency Moody’s Investors Service. Almost all indicators, such as NIM (net interest margin), CASA (current account savings account), ROA (return on assets), and LDR (loan to deposit rate) of banks will significantly improve this year, it believes.

In a meeting with the Deputy Governor of the State Bank of Vietnam (SBV), Mr. Pham Thanh Ha, Mr. Zafer Mustafaoglu, Director of the World Bank (WB)’s Department of Finance, Competition and Innovation in East Asia - Pacific, affirmed that it stands ready to support the SBV to develop a modern, inclusive, and resilient financial and banking sector, and supports the central bank in digital transformation, perfecting a legal framework on green credit and banking, and joining the Network for Greening the Financial System (NGFS).

SSI Research maintains a positive view of Vietnam’s banking industry in 2022. In the first quarter, the industry posted stable pre-tax profit growth thanks to three factors: strong credit growth, stable net interest margins (NIM), and bad debt and restructured loans being well-controlled. It is expected that pre-tax profit in 2022 will increase 24-25 per cent.

The State Bank of Vietnam (SBV) has decided to establish a steering committee on digital transformation in the banking sector, headed by SBV Governor Nguyen Thi Hong. It will be responsible for promoting the digital transformation process at credit institutions and foreign bank branches, creating the conditions needed for the implementation of Industry 4.0 in the banking sector.