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Research and Markets: Vietnam Commercial Banking Report Q4 2009 - Independent Forecasts & Competitive Intelligence on Vietnam's Commercial Banking Ind

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Research and Markets (http://www.researchandmarkets.com/research/34be1b/vietnam_commercial) has announced the addition of the "Vietnam Commercial Banking Report Q4 2009" report to their offering.
This Vietnam Commercial Banking Report provides industry professionals and strategists, corporate analysts, banking associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Vietnam's commercial banking industry
The publisher now rates 59 banking systems, and it is little surprise that the developed states dominate the top spots. The US and UK come first and second place, respectively, with scores of 88.7 and 88.0 out of 100. Of crucial importance to both scores is the very high rankings in the crucial 'Risks to realization of returns -Market structure' sub-category, which accounts for 42% of the overall score. The two countries are ranked first and second in this category as well. This sub-category captures the size of the sector, and the potential for assets and loans to grow in US dollar terms. While both systems have been buffeted by the global credit crunch and will not post stellar growth numbers in percentage terms for the foreseeable future, the sheer size of the US and UK's financial systems means that there is massive potential for deposits, assets and client loans to rise. In addition, the generally solid institutional framework - which looks set to be augmented with new post-credit crunch regulations - will continue to provide a firm basis for the sector.
A Mixed Bag for the Developed States: Following just behind the US and UK are a clutch of major developed state economies, including France (82.9, 3rd) and Germany (80.5, 4th globally), Canada (79.9, fifth), as well as Australia and Italy (78.4, joint sixth). All of these sectors have reasonable prospects into the medium term, having a large deposit and loan base, as well as the potential to grow substantially in volume (even if not percentage) terms. However, several states are notable by their absence in this cluster. Austria falls somewhat short (72.4, 12th) of the pack, along with Greece (69.4, 16th), but it is the poor performance of Switzerland (62.7, 26th) and Japan (56.3, 34th) which really stands out. Both states are going to struggle to post increases in asset or loan growth in US dollar terms over the forecast period, to 2013, partially as a result of currency moves to the downside, but also in the case of Switzerland because of the relative weakness of the two key banking groups, UBS and Credit Suisse which had built up large franchises during the good years.
Asia Rising: Significantly, just behind the main 'pack' of European economies, several Asian states have managed to post strong performances in their risk ratings. Malaysia (72.1, 11th) and Singapore (77.1, 8th) come in ahead of Austria. However, Singapore leads the world globally in the 'Risks to realization of returns -Country risk' sub-category, with a score of 84.0, while South Korea has a score of 64.0. Singapore's high score rests on good scores for key elements of BMI's economic, political and business environment risk ratings, which measure the risks to policy continuity. In contrast, the small size of the economy and banking sector is a major factor limiting the potential for expansion, especially in a world of lower liquidity and risk appetite. South Korea, however, has a large domestic economy to provide the deposit base necessary to fund credit growth.
Elsewhere in Asia, the publisher notes that China (overall score 75.1) ranks 9th overall. As the world's third biggest economy - and still an emerging one at that - it is little surprise that the scope for asset growth in China is huge. This has allowed the country to be ranked fourth in the 'Limits of potential returns' category (74.0),and post the highest 'Limits of potential returns - Market structure' sub-category score, at 90.0. What prevents China from rising any higher is its poor performance in the 'Limits of potential returns - Country structure' sub-category, at 57.5 (42nd), and the 'Risk to realization of returns category', at 80.0 (9th). Of particular concern to BMI is the potential for a collapse of the local system, because much lending is still state directed and risk management is still embryonic. In addition, despite the size of the whole economy, per capita GDP remains low. The publisher forecasts it at US$3,024 for 2009, with significant income inequalities. This severely limits the ability of financial institutions to sell premium products in the local markets, and also means that average deposit levels are still very low.
Key Topics Covered:
Executive Summary
SWOT Analysis
Business Environment Outlook
Competitive Landscape
BMI Banking Sector Methodology
Companies Mentioned:
Vietcombank
BIDV
VietinBank
Agribank
MHB Bank
Habubank
Eximbank
Sacombank
Saigonbank
SeABank
For more information visit http://www.researchandmarkets.com/research/34be1b/vietnam_commercial

Contact:Research and MarketsLaura Wood, Senior Manager,press@researchandmarkets.comU.S. Fax: 646-607-1907Fax (outside U.S.): +353-1-481-1716

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