Vietnam Approves Development Strategy for the Banking Sector till 2025 – Period Objectives end of 2020
Periodic objectives
The government has set periodic objectives, which would help them to compare and efficiently manage the implementation of the development strategy.
2018 to 2020
- Restructure the credit institutions system to manage bad debts and ensure the interests of depositors. In addition, Decision 986 also aims to maintain the stability of such institutions and reduce the number of weak credit institutions; and
- Continue to improve the financial sector, particularly credit institutions in line with international norms. Also focus on issues in credit institutions such as cross-investment, cross-ownership, ownership of manipulation, and promote divestments.
End of 2020
- At least 12 to 15 commercial banks should apply Basel II standards, international banking regulations issued by the Basel Committee on Bank Supervision, which sets minimum capital requirements and risk management methods for banks. One or two commercial banks should be among the top 100 largest Asian banks;
- Increasing the share of non-credit services to the total income of a commercial bank to around 12 to 13 percent. Also, list shares of joint stock commercial banks on the stock exchange; and
- Ensure that the bad debt ratio stays below three percent.
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