VietNamNet Bridge - As commercial banks have increased Internet Banking, Mobile Banking and cash withdrawal service fees, clients have shifted to use e-wallets which are convenient and free.

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VietNamNet Bridge - Most commercial banks have announced plans to pay big dividends, but there are some banks which have not paid dividends over the last 10 years.

VietNamNet Bridge - Big changes in key personnel have been among the hottest issues discussed at banks’ shareholders’ meetings this year. 

Several banks reportedly are offering annual pay of VND8 billion to experienced foreign CEOs.

State-owned commercial banks are growing concerned over the critically low capital adequacy ratio (CAR) of around 9 per cent, which also hit the minimum required CAR for the Vietnamese banking system.

VietNamNet Bridge - Vietnamese commercial banks are very busy these days with plans to launch IPOs, call for capital, seek strategic partners, and list shares on the bourse.

Many divestment deals have been made by commercial banks this month. Most of the businesses in which banks have withdrawn capital have made only modest profits and have had unsatisfactory business results.

Most commercial banks responding to a survey by the State Bank of Vietnam (SBV) said their business performance had seen considerable improvement in the third quarter, and they expect high profits this year.

Injecting money in non-core business fields, experimenting in real estate projects, and having a bad financial foundation are the three most significant risks facing the business environment in Vietnam.

The net interest margin (NIM) of Vietnamese banks is lower than that of other regional banks, while financial reports show that the business performance of the banks depends heavily on credit.

VietNamNet Bridge - Analysts believe that banks at year-end will ease interest rates, which will make loans more accessible for businesses.

VietNamNet Bridge - FE Credit is leading the consumer finance market with $1.4 billion worth of loans provided in 2016, accounting for 48 percent of market share. 

VietNamNet Bridge - Many banks have said they will pay dividends in shares instead of cash, causing concern among investors. 

While the State Bank (SBV) has legalized the use of state money to support the restructuring of weak banks, it has not specified where the government will get the money to pump into the banks.

VietNamNet Bridge - Banks’ finance reports in 2016 show good news and bad news. Most of them had profits higher than the year before, but the number of non-performing loans increased.

The State Bank, while admitting that it is difficult to eliminate cross-ownership in commercial banks, said in many cases, institutions and individuals borrow money from credit institutions to buy bank stakes or contribute capital to banks.

VietNamNet Bridge - Profits from lending still make up a large proportion of banks’ total profits, but bad debt remains a problem.

VietNamNet Bridge - More than VND100 trillion was paid by the eight biggest commercial banks to depositors in 2016. 

VietNamNet Bridge - The dong/dollar exchange rate remained stable for most of 2016 thanks to important government and State Bank policies, and resources of the national economy.