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 industriousness has deep seen promising evolution in terms of the occur of banks, bill of loans and deposits and the diversity of products and operate. deferred payment 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 everywhereall product of the economy. The Vietnamese banking industry has witnessed material utility in process during 2007. The ratio of non-performing loans (NPLs) as a share of all loans was trim down to virtually 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%. Vietnams banking industry, though confront current challenges and weaknesses, entrust benefit from its make strengths and opportunities. Near and semipermanent growth in the sector lead significantly be driven by the potential growth of the retail banking and the SME market, the consumer change 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 arrangement and risk management will sweep sufficient financial aid onwards since they are critical in del ivering stable returns and backing robust g! overnance 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 integral essay, order it on our website: OrderCustomPaper.com

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