Six priority strategies of banks amid COVID-19 pandemic
Illustrative image (Photo: VNA)
Domestic banks will continue striving to ensure business performance and deliver on commitments to investors while supporting clients amid difficulties this year.
A survey conducted by Vietnam Report JSC pointed out six priority strategies of domestic banks at present, including accelerating digital transformation; persifying products and expanding markets; increasing charter capital; changing operating structure; enhancing risk management; and promoting human resources training to adapt to digital transformation.
General Director of the Vietnam Report JSC Vu Dang Vinh said amid the fourth wave of COVID-19 infections, banks were forced to cut lending rates, resulting in reduction in net profits. To maintain business performance, they will increase non-credit incomes, restructure capital by cutting costs and attracting more demand deposits.
This year, banks will race to cut inter-bank money transfer fees to draw demand deposits. With an additional registered capital of nearly 82 trillion VND, there will be more room to propel credit growth and develop the securities market, he said.
According to the survey, several banks began expanding markets in rural areas and agriculture, and linking with partners and customers in ecological system.
Experts suggested that the Government and the State Bank of Vietnam should continue assisting credit organisations in supplying capital to clients hit by the pandemic, and make it easier for them to hike capital to meet Basel II standards.
At the same time, it is necessary to perfect legal mechanisms with new business models, upgrade infrastructure, payment and data systems.
In a survey carried out by Vietnam Report in June, 75 percent of banks said the national data system has yet to be completed, which needs the Government’s support to speed up digitalisation./.
Related News
Continue to handle cross-ownership in banks
10:35 | 02/11/2024 Finance
More efficient thanks to centralized payments between the State Treasury and banks
13:51 | 17/10/2024 Finance
Allocating credit room, motivation for banks to compete
19:14 | 14/09/2024 Finance
Banks minimize costs, optimize profits
19:05 | 02/09/2024 Finance
Latest News
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
More News
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance
State-owned securities company trails competitors
14:46 | 20/11/2024 Finance
Strengthening the financial “health” of state-owned enterprises
09:23 | 20/11/2024 Finance
U.S. Treasury continues to affirm Vietnam does not manipulate currency
13:46 | 19/11/2024 Finance
Exchange rate fluctuations bring huge profits to many banks
13:43 | 19/11/2024 Finance
A “picture” of bank profits in the first nine months of 2024
09:42 | 19/11/2024 Finance
Many challenges in restructuring public finance
10:02 | 18/11/2024 Finance
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs
09:19 | 17/11/2024 Finance
Disbursement of public investment must be accelerated: Deputy PM
19:32 | 16/11/2024 Finance
Your care
Monetary policy forecast unlikely to loosen further
15:51 | 22/11/2024 Finance
World Bank outlines path for Vietnam to reach high income status
13:44 | 22/11/2024 Finance
Strictly control public debt and ensure national financial security 2025
09:26 | 22/11/2024 Finance
Revising the title of a draft of 1 Law amending seven finance-related laws
14:33 | 21/11/2024 Finance
Transparency evates the standing of listed companies
09:47 | 21/11/2024 Finance