Vietnam to establish g12+1: small banks at disadvantage
Small banks may be at a disadvantage as they are not permitted to attend the meeting between the SBV and other big banks.
The State Bank of Vietnam, the country’s central bank, held a meeting with commercial banks on Sept. 7, initiating to form a group of 12 biggest banks and the SBV called G12+1. The group is scheduled to meet once every quarter to address the local banking issues.
The announcement came as the central bank was trying to strengthen the discipline in the banking system, said a manager of Saigon – Hanoi Commercial Joint Stock Bank (SHB), believing that G12+1 will help to enforce monetary policies.
However, small banks judged the move unfair, worrying that deposits will flow to G12 banks, which are considered as safer. A manager of an unnamed small bank suggested including Viet Nam Banks Association to form G12+1+1 to prevent unfair competition.
Small banks account for only 20% market share but represent 80% of total number of banks.
Source Sophie/ News Writer/ StoxPlus
Tags: Vietnam banking industry, Vietnam finance, Vietnam financial
Posted by VBN on Oct 4 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
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Singapore Business News
To solve this issue at small commercial banks. It’s crucial that major banks and small bank must be handshake each other to address this deposit int.rate race among banks. whether forming G12+1, have the move unfair to small banks and deposit will flow to major banks.