Bank share market expects changes in 2017VietNamNet Bridge - The reported satisfactory business results in 2016, plus positive media comments about banks’ operations, have caused investors to feel optimistic about the prospects of the sector in 2017. However, analysts believe that banks would have to overcome more difficulties to retain the high growth rate in 2016, for many reasons. This would push up the deposit interest rates up, thus making banks’ capital mobilization cost higher. Since January 1, 2017, the maximum proportion of short-term capital banks can use for long-term lending has been cut from 60 percent to 50 percent. High credit growth rate in 2016 has led to decreased CAR (capital adequacy ratio) at banks, especially state-owned banks.

Source: VietNamNet News March 27, 2017 06:11 UTC