Six priority strategies of banks amid COVID-19 pandemic

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; diversifying 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./.