Foreign banks suffer ‘weather allergy’
At the end-of-year meeting between the representatives from the State Bank of
In 2008, the non-performing loan ratio of foreign banks in
Consumer credit, one of the big advantages of foreign banks, has not been developed over the last year This may be one of the reasons why, at the Vietnam Business Forum, held in early December on the threshold of the Consultative Group Meeting, foreign bankers unanimously called for the State Bank of Vietnam to remove the ceiling interest rate scheme.
However, foreign banks have gained certain achievements in the last one year. The official setting of foreign banks in
Statistics showed that by the end of October 2008, the foreign credit institutions’ mobilized capital had reached VND 22,957 billion, an increase of 46% over the end of 2007. This shows a very high growth rate, if noting that the average growth rate of the banking system is just 16.61%. Meanwhile, the total outstanding loans had reached VND 152,952 billion.
Governor of the State Bank of
The three licensed banks are all big banks that have presented in many countries in the world, which aim to conquer the market in the long-term. Therefore, the difficulties in 2008 may not be a big problem for them.
A survey conducted in 2007, when no foreign bank entity was licensed, showed that 50% of clients said that they will use the banking products by foreign banks. This is a big concern for domestic banks.