| Author | Tran Dinh Thong |
| Note | A project submitted in partial fulfillment of the requirements for the
degree of master of engineering (Professional) in
Finance, banking and information management (VN)
|
| Publisher | Asian Institute of Technology |
| Abstract | Vietnam banking system is facing a lot of difficulties in recent years especially high
inflation, high interest rate and bad debt are three main concerns of the government and
State bank of Vietnam. While the inflation is more related to the macroeconomics and
monetary policy of state bank of Vietnam, the high interest rate and bad debt are more
related to the bank problem including weak corporate governance, weak control on the
lending and mortgage, non transparency on NPL, provision for NPL.
One of the reason for those above mentioned issue are the cross shareholding between
banks which caused the weak governance, liquidity issue, high interest rate and bad debt.
The cross shareholding may be between banks and between bank and corporate and
between banks and its subsidiaries.
The cross shareholding model in Vietnam bring to market lot of issue as bank founders
just establish the bank to support for their own purposes and they just use the banks as a
channel to mobilize funds and try to get the fund at high price which caused the high
interest rate last year. They also use the banks as vehicle to borrow the money
unconditionally via corporate bond, this is caused the bad debt for the banks. |
| Year | 2013 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Chairperson(s) | Anas, Yusra;Bart, Amrit N. |
| Examination Committee(s) | Engwan, Ng |