Vietnam is among the “most exposed” to Europe crisis: Moody’s

The local banking system is one of the most vulnerable in the Asia-Pacific region to further deterioration of Europe’s debt crisis, Moody’s Investors Service said in its report yesterday [Feb 6].

Vietnam’s relatively undiversified economy, weak financial system, along with the country’s heavy dependence on low-cost dollar loans exposes the banking system to tightening foreign-currency liquidity, said Stephen Long, a Moody’s Managing Director for the Financial Institutions Group in Asia Pacific.

Moody’s assessed and classified 16 banking systems in Asia into 3 categories, namely More Exposed, Exposed, and Less Exposed, basing on their exposure to sudden euro zone’s slump.

The debt watcher evaluated 16 systems in five main areas: (1) a banking system’s dependence on external funding; (2) the significance of euro area banks in individual banking systems; (3) a country’s economic dependence on exports; (4) the overall challenges faced by the banking system; and (5) the ability of a government to support the country’s banks, if needed.

Source Sophie/ StoxPlus, Moody’s

Tags: Vietnam economic, Vietnam economic growth, Vietnam economy, Vietnam economy 2012

Posted by VBN on Feb 8 2012. Filed under Economy News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry