, Vietnam

Small Vietnamese banks self-restructure to survive

Their own restructuring plans.

Some small Vietnamese banks have submitted these to the central bank for approval seeing that their survival depends on it.


GP Bank, Navibank, Trust Bank and Western Bank were on the central bank's list for restructuring this year because of their weak liquidity.

These banks show that their bad debt ratios are just around 2 percent of the total outstanding loans. However, the real figure is closer to nearly 10 percent.

To survive and develop, TrustBank and Navibank have taken the initiative in restructuring.

The central bank approved TrustBank's restructuring solution in September and allowed the implementation soon.

TrustBank's plan called for capital from domestic strategic shareholders with the biggest share to be held by a large-scale bank, he said.

The restructuring plan of Navibank has also been placed under the management of the State Bank of Viet Nam and submitted to the central bank and government for approval, Minh said.

Senior economist Pham Do Chi said that many small banks in Vietnam have had modest prescribed capital and their Capital Adequacy Ratio has been also low.

"In particular, the small banks' equity capital often accounts for only 10 per cent of their total assets, while the corresponding figure in other countries is about 20 per cent," Chi said, adding that this was a sign of weakness in the domestic banking sector.

Because of the banks' low equity ratio, the banking sector's restructuring process should not be implemented by merely reducing the number of commercial banks. It should be done through the mergers and acquisitions to create comprehensive improvements in the Vietnamese financial system, Chi said.

For more.

Pembekuan pendanaan menghantam penyedia layanan BNPL

Investor semakin sedikit mengalirkan dana ke penyedia layanan BNPL yang sudah menghadapi keuntungan margin yang tipis.

HSBC: Aliansi bank-fintech merupakan win-win

Pemberi pinjaman dapat belajar dari teknologi disruptif sambil membantu mereka mematuhi regulasi.

Tokenisasi aset perdagangan untuk menjembatani kesenjangan pembiayaan

Teknologi blockchain dapat mendesentralisasikan operasi keuangan dan mempermudah akses kredit.

BCA menjalankan komitmen terhadap keuangan berkelanjutan

Bank asal Indonesia ini mempertimbangkan aspek lingkungan dan tata kelola dalam keputusan pemberian pinjaman.

Mengapa UNOBank mendorong embedded finance tumbuh di Filipina

Bagi UNOBank, banking interface terpadu adalah strategi pertumbuhan sekaligus upaya inklusi keuangan.

OCBC mencoba mengurangi kesenjangan manfaat bagi agen properti di Singapura

Produk terbarunya menawarkan manfaat finansial di bidang perbankan, asuransi, dan perdagangan.

Upaya Malaysia menjadi anggota BRICS untuk mendorong perombakan sistem perbankan

Namun, tantangan muncul ketika menjauh dari ketergantungan pada AS dan SWIFT.

Platform pembayaran PingPong memperoleh lisensi PJP di Indonesia

PingPong mengincar ekspansi ke pasar ekspor senilai $320 miliar di negara tersebut.

Merger dan penutupan mengancam 3.800 bank di area pedesaan Cina

Sekitar 70 bank di area tersebut telah merger sejak 2023.