Economic Analysis - Banks Continue On A Steady Path Of Recovery - APR 2018
BMI View: Vietnamese banks are likely to perform well over the medium-term supported by a favourable macroeconomic backdrop and strong government initiatives to accelerate the resolution of NPLs. That said, risks to financial stability, although low, are rising.
The Vietnamese banking sector remains on a steady path of recovery aided by a robust macroeconomic outlook and efforts by the Vietnamese authorities to speed up the resolution of problem loans. That said, we note that sustained high credit growth, undercapitalisation, poor financial transparency, and a weak risk management framework pose downside risks to the otherwise positive outlook.
Robust Growth Outlook To Be Supportive Of Banks' Performance
|Asset Growth To Moderate Slightly But Still Strong|
|Vietnam - Banking Assets And Real GDP Growth, %|