It’s Ideal to Restructure the Banking System Now, HSBC Vietnam CEO Says
This is a perfect time to restructure the local banking system comprehensively, Sumit Dutta, CEO of HSBC Vietnam told the local newswire CafeF
There are presently too many banks in the local economy, yet not enough efficient banks which help to boost the country’s economic development. Besides, domestic banks are in shortage of qualified human resources due to their strong expansion over the past years.
Lack of transparency in the financial statements of many banks also makes it hard for the State Bank of Vietnam (SBV) to “diagnose” the health of each bank.
In 2012, the local banking system will be restructured comprehensively according to a clear roadmap developed by the government and the central bank, which helps to improve the soundness and transparency in the operation of local banks.
He believed that the central bank will soon announce credit growth for the entire sector and for each credit institution, adding that the overall credit growth limit is likely to be 15-16%.
The central bank will maintain tight monetary policies this year to curb inflation, he said, adding that the government body will closely watch the market movements for necessary adjustments.
HSBC is the strategic partner of Vietnam Technical and Commercial Joint Stock Bank (Techcombank) and BaoViet Corporation. Currently, HSBC owns 20% stake of Techcombank and holds 18% at BaoViet Corp.
