HSBC CEO wants Vietnam's banking system restructured soon

Based on a roadmap developed by the Vietnamese government and the central bank, The local banking system will be restructured comprehensively in 2012.

It is meant to improve the soundness and transparency in the operation of local banks.

A bank CEO, Sumit Dutta of HSBC Vietnam, agrees that restructuring the local banking system comprehensively should be done now.

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 to “diagnose” the health of each bank.

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 Techcombank and BaoViet Corporation. Currently, HSBC owns 20% stake of Techcombank and holds 18% at BaoViet Corp.

For the source of this story, click here.

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