When the Circular 19/2010/TT-NHNN takes effect, regulations on credit operations will be stricter. When the Law on Credit Institutions and the Law on State Bank come into force, banks will have to tighten their operations in 2011 and the competition will be fiercer.
"Opportunities always go along with challenges,” Ms Cao Thi Thuy Nga, Deputy Director General of Military Bank (MB)
Banking operations will be managed more closely by new regulations. The hardest job for banks is to meet requirements of the State Bank of Vietnam and to realise growth expectations. However, opportunities always go with challenges. Banks will be successful if governance and operations are good.
In 2010, MB made a profit of VND2,000 billion, beating the full-year plan of VND1,700 billion, maintained bad debt ratio at less than 2 percent, and kept credit and deposit growth of 25 percent - 30 percent. This year, we expect at better results but we will be more careful when we set targets and plans.
"Confident but not complacent,” Dang Van Thanh, President of the Board of Directors of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)
In the current volatile business world, banking operations are very sensitive, potentially risky and largely open to international trade; thus, they are very vulnerable to global financial crisis and economic downturn. In this context, Sacombank is optimistic, confident but not cocky about initial successes. Also, we must find out limits and shortcomings to take measures to address positively and promptly.
If Sacombank focuses on increasing its registered capital in the 2006 - 2010 period, it will concentrate on raising owner’s equity in the 2011 - 2015 period. Particularly, in 2011, Sacombank expects to lift the owner’s equity to VND17,000 billion on a registered capital of VND10,700 billion and make a pre-tax profit of VND 2,800 billion. Other indicators will increase 20-30 percent over 2010.
"More cautious strategy is necessary," Mr Tran Phuong Binh, General Director of DongA Bank
Interest rates will definitely influence lending operations. With determinations to cap inflation at 7 percent and more drastic measures to be taken to achieve the goal, interest rates may not increase this year. In my opinion, if the economy keeps growth momentum next year, banking operations will be surely profitable. However, unlike previous years, banking operations this year and in following years will require more cautious strategies.
When the Circular 19/2010/TT-NHNN takes effect, regulations on credit operations will be stricter. When the Law on Credit Institutions and the Law on State Bank come into force, banks will have to tighten their operations in 2011 and the competition will be fiercer.
"Much room for development,” Mr Brett Krause, CEO of Citibank Vietnam
In fact, domestic banks introduced many services but they lacked most convenient products for customers. This will be an opportunity for foreign banks in general and Citibank in particular to compete in developing retail financial products. Citibank plans to set up a 100 percent owned affiliate in Vietnam to penetrate deeper into this market. In 2011, foreign banks and domestic banks will be treated completely equal in Vietnam. This will be an opportunity for foreign banks to develop but competition will become increasingly fierce.
D.T
Vietnamese
