RETAIL BANKING | Roxanne Uy, Vietnam

Vietnam's rising loans-to-deposits ratio

The pace of credit growth has outstripped the availability of funds since 2008, says Standard & Poor's.

According to S&P, Vietnam's banking system has been grappling with tight liquidity since 2008. The rapid pace of credit growth is reflected in the system's rising loans-to-deposits ratio. "The smaller and financially weaker banks typically bear the brunt of funding pressures because they lack the sophistication and wherewithal to handle a prolonged strain on liquidity. Instead, they rely on short-term measures and price wars to secure deposits, which have a destabilizing effect on funding and tend to erode margins."

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.