Vietnamese Banking System in the Context of ASEAN Financial Integration

Abstract

This paper enlightens the main features of ASEAN Banking Integration Framework (ABIF) and the requirements for Qualified ASEAN Banks (QABs). Using Moody’s evaluation method and Bankscope database for banking systems in 7 ASEAN countries, the paper compares Vietnamese banking system with the rest of the region on asset quality, capital adequacy, profitability and liquidity aspects. The results show that Vietnamese banks are relatively low-developing, and will face fierce competition from foreign banks on their home market. Measuring the effects of integration appears essential for the regulators and banks in seeking appropriate and prompt solutions to these challenges and in seizing valuable opportunities to obtain sustainable and efficient development.

Цифровизация Банков: Риски И Стратегии Управления Финансовыми Активами В Цифровой Эпохе

“…В то время как на Филиппинах диверсификация не отразилась на росте прибыли, но в целом оказала положительное влияние на результативность работы банков. В Малайзии, после диверсификации активов, наблюдалось снижение прибыли, но работа по управлению рисками характеризовалась как более эффективная [3] .…”

Risks of Banking Services’ Digitalization: The Practice of Diversification and Sustainable Development Goals

“…In Malaysia, the diversification of assets negatively affects profit, but increases efficiency and positively affects risk management [8]. In Vietnam, diversification has no practical effect on bank performance due to an underdeveloped market [9]. Asian banks do not diversify lending activities to increase profits in the context of liberalization.…”