<\/p>\n
Asset quality risks are expected to remain contained, Fitch Ratings said.<\/p>\n
Leading banks in Vietnam are likely to sustain their profitability in the second half of 2024, with their steady margins and higher trading gains expected to offset higher impairment costs, according to Fitch Ratings.<\/p>\n
\u201cWe also believe that recent liquidity tightness in the sector is likely to ease when global policy rates start to decline, limiting pressure on margins, while loan growth should remain broadly healthy on the back of sustained economic momentum,\u201d the ratings agency said in a report.<\/p>\n
Asset quality risks arising from Vietnam\u2019s real estate sector is likely to remain contained on strong backing from the banks and authorities.<\/p>\n
Many local banks\u2013 notably private sector banks\u2013 have been eager to fill developers\u2019 refinancing gaps, noted Fitch. The aggregate real estate-related exposure of banks rose to 19% of their loans by end-2023, from just 15% at end-2022. This excludes residential mortgages.<\/p>\n
\u201cOver the medium term, banks\u2019 large appetite for risk and thin capitalisation are likely to remain key credit considerations and constraints on their standalone credit ratings,\u201d Fitch Ratings said.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Asset quality risks are expected to remain contained, Fitch Ratings said. Leading banks in Vietnam are likely to sustain their profitability in the second half of 2024, with their steady margins and higher trading gains expected to offset higher impairment costs, according to Fitch Ratings. \u201cWe also believe that recent liquidity tightness in the sector […]<\/p>\n","protected":false},"author":1,"featured_media":1892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Vietnam-banks-33-1140x445.jpeg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Vietnam-banks-33-463x348.jpeg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Vietnam-banks-33-300x200.jpeg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/06\/Vietnam-banks-33-scaled.jpeg",2560,1706,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=1891"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1891\/revisions"}],"predecessor-version":[{"id":1893,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/1891\/revisions\/1893"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/1892"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=1891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=1891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=1891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}