Positive signs for banking sector in 2014

This is the outcome of a business trend survey of credit institutions in Vietnam for the first quarter of 2014.

The survey was conducted from November 22 to December 10 of 2013 by the Monetary Statistics and Forecast Department under the State Bank of Vietnam.

According to the survey, almost all credit institutions stated that in the fourth quarter of 2013, their liquidity remained stable or improved while the ratio of bad debts to outstanding loans was down. These trends are expected to continue this year.

They also said positive changes were seen in internal factors that directly affect their business activities and will get better in 2014. The factors include financial strength, human resources, technology, risk management capacity, policies on credit, interest and exchange rates, and customer services.

Additionally, external factors like the central bank's regulations governing credit, interest and exchange rates and banking operations, or market demand and competitiveness from other credit institutions, is said to be stable and likely to advance in 2014.

A slight growth in demand for banking services, particularly savings and lending ones, was also reported in the fourth quarter and is forecast to continue.

(Source: Dangcongsan.vn)