Foreign Banks See Robust Growth in 8 Months
Foreign banks attained robust growth in the first six months despite difficulties faced by domestic lenders.
According to the State Bank of Vietnam’s HCM City branch, total deposits of banks in the city reached VND542 trillion deposits as of August, up 11.3 per cent from the beginning of this year.
While state-owned commercial banks saw deposits fall of 2.7 per cent, joint stock banks witnessed a sharply growth at 21.3 per cent and foreign banks at 9.7 per cent.
Total outstanding loans of Ho Chi Minh City-based banks hit VND484 trillion in the period, representing an increase of 19 per cent from the start of 2008.
Foreign banks saw a sharp lending growth at 49 per cent, at VND100 trillion, while joint stock banks posted a growth at 15.6 per cent and state owned banks at 6.5 per cent.
Ho Huu Hanh, director of the SBV’s HCM City branch, said foreign banks with more professional expertise have been expanding market share in Vietnam.
Foreign lenders are confirming their presence in Vietnam by providing a lot of banking services for individuals and businesses such as issuing credit cards, installing ATMs and offering internet banking service.
Recently, liquidity of banking system has become stable, Hanh said. (Saigon Economic Times)
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