State - owned commercial banks and the implementation of Scheme for Restructuring the System of Credit Institutions in the Period of 2011 - 2015

Abstract

Since the reforms under Doi Moi policy, Vietnam’s commercial bank system had experienced significant changes and obtained stimulating results, such as: ownership diversification, growth in asset and equity, increased number of banks and banking services etc. However, after the 2008 global crisis, the Vietnam’s commercial bank system has revealed its shortcomings (e.g. high rate of NPLs, low liquidity, low human resource quality). In response to the bad performance of some commercial banks that can result in the breakdown of the whole system, the Government has applied decisive actions to restructure the credit institutions in general and commercial banks in particular. This paper aims to review the performance of stateowned commercial banks from 2011 to 2015 to reassess results of the implementation of Scheme for restructuring the system of credit institutions in the period of 2011 – 2015 by the Prime Minister.