Banks have reported satisfactory business results for 2020 and are projecting ambitious plans for 2021.

Increasing chartered capital is the most important task for the four state-owned commercial banks. If their CARs are lower than Basel II standards, they will have to restrict lending.

Some credit institutions (CIs) that have not yet completed their restructuring roadmap will have to speed up the process to meet the State Bank of Vietnam (SBV)’s deadline this year.

Overdue debts, which are increasing rapidly during Covid-19, will adversely affect business results and capital growth capability of many commercial banks in Vietnam.

Many banks have adjusted business plans and set lower business targets as businesses, or bank clients, have been hit hard by Covid-19.

The race to increase the CASA portion among commercial banks has become fierce.

After two years of strong recovery and high growth, the banking sector is facing major challenges because of Covid-19.

The banks will have to complete the transitional period to meet Basel II standards and begin the race for Basel III, and will also have to list shares and compete fiercely in the digital transformation process.

With Circular 22, which took effect on January 1, the State Bank of Vietnam (SBV) has laid a new block to restrict capital flow to the property sector.

The reliance of private enterprises, business households and individuals on bank credit has brought both positive and negative effects.

Eighteen commercial banks are listed on the bourse, but only one bank entered the bourse in 2019.

2019 witnessed low credit growth rate.

2019 has been a good year for the banking sector. Most commercial banks performed well with profit results exceeding the targets set earlier in the year.

Capital difficulties are putting pressure on some banks struggling to meet the central bank’s Basel II deadline of early next year, but experts suggest the central bank should not delay the process.

The BIDV’s sale of shares to South Korean investor, the technology upgrading race among banks and a series of moves taken by the central bank are the highlights of 2019.

Fitch analysts were upbeat about continued strong economic growth in Vietnam, which makes near-term stress unlikely and underpins their stable outlook for the banking sector.

The time to apply standards in accordance with Basel II is nearing and commercial banks are rushing to raise chartered capital.

Commercial banks are issuing international bonds because they need foreign currencies to satisfy dollar capital demand.

With great advantages being held by foreign banks, Vietnamese banks find it difficult to compete.