Presentation is loading. Please wait.

Presentation is loading. Please wait.

An overview on Vietnam Banking System and Credit Policies

Similar presentations


Presentation on theme: "An overview on Vietnam Banking System and Credit Policies"— Presentation transcript:

1 An overview on Vietnam Banking System and Credit Policies
Seminar An overview on Vietnam Banking System and Credit Policies Speaker: Associate Professor Truong Quang Thoâng The University of Economics HCM city

2 The number of Banks 1991-2012 State-Owned Banks Joint-Stock Banks
1991 1993 1995 1997 1999 2001 05 06 07 08 09 10 11 12 State-Owned Banks 4 5 Joint-Stock Banks 41 48 51 39 37 34 Foreign Banks 8 18 24 26 29 31 43 47 49 50 Joint-Venture Banks 1 3 Total 9 56 74 84 83 75 78 80 89 94 98 96

3 Lending Shares 2000 2001 2002 03 04 05 06 07 08 09 10 11 12 (e) State-Owned Banks 77% 79% 80% 73% 65% 59% 58% 54% 51% 53% Joint-Stock Banks 9% 10% 11% 12% 15% 21% 27% 32% 35% 34% Foreign and J-V Banks Others 2% 5% 6%

4 Deposit Shares 2000 01 02 03 04 05 06 07 08 09 10 11 12 (e) State-Owned Banks 77% 80% 79% 78% 75% 69% 59% 57% 49% 45% 43% 44% Joint-Stock Banks 11% 9% 10% 13% 16% 22% 30% 32% 41% 46% 47% Foreign and J-V Banks 8% 7% Others 1% 2%

5 Growth and… crisis 2006 2007 2008 2009 2010 2011 M2 Growth 34% 46% 20%
29% 33% 12% Credit Growth 25% 50% 28% 32% 14% CPI 7.1% 8.3% 23.1% 5.9% 10% 18.6% % FX Rate 0.9% 0.7% 1.2% 4.7% 9.1% 10.10% Import Deficit (in billion USD) -5.1 -14.2 -18.0 -12.9 -12.6 -9.8 Source : Vũ Quang Việt (2013)

6 Investment vs Savings 2006 2007 2008 2009 2010 2011 Investment/GDP (1)
37% 43% 40% 38% 39% 33% Saving /GDP (2) 28% 26% 23% 24% Difference (1) and (2) 9% 17% 16% 8% Source : Vũ Quang Việt (2013)

7 The highest bad debts rate ever recognized…
Graphic: Bad Debt Rate Over Years On 7/6/2012, for the first time ever, the Governor of the SBV recognize that the “real” bad debt rate is 8,6% equivalent to 202 thousand of billions VND.  About the newly- established Vietnam Asset Management Company (VAMC)

8 Have interest Groups been controlling banking activities?
As recognized by the Governor, there are some banks controlled by 1, 2 group(s) of shareholders; and there are some banks where of loan outstandings have been granted to the benefices of these groups of interest.

9 Cross-ShareHoldings Among Vietnam Banks
Source: Nguyễn Đức Mậu, Nguyễn Xuân Thành (2012)

10 M&A Business and the “Failure” of the so-called Restructure Plan
Source: Nguyễn Đức Mậu, Nguyễn Xuân Thành (2012)

11 Interest Rates Evolution during 2012-2013
Good or bad in 2013? : May banks, with liquidity surplus, but do not lend …

12 Some Institutional Concerns
Commercial Banks vs Investment Banks ? The fact that non-bank business invest in shares on bank(s) and vice versa. The fact that a bank invests in shares on other bank(s). Group Interest, business ethics and the need of a “Code of Conducts” in banking area. Looking back to the Decree 141/2006 on bank capital increase and its impacts… .

13 Thank You


Download ppt "An overview on Vietnam Banking System and Credit Policies"

Similar presentations


Ads by Google