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Vietnam banking sector restructuring and challenges for local banks to evolve their internal control system

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Vietnam banking sector restructuring and challenges for local banks to evolve their internal control system

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Viet Nam banking sector had experienced an expansion and strong growth during the period of 1997 to 2007, supportive to a rapid growth of the economy. Many new licenses provided for the establishment of financial institutions, together with a wave of converting rural joint stock banks into urban joint stock banks and the requiredincrease for banks’ owner capital. As impacted from the financial crisis in 2008, the banking sector appeared several weaknesses and deficiencies.One of the deficiencies was the failure of banks’ internal control systems in aspects of their design and operation. The crisis of credit institutions forced the government to announce the restructuring programs.As consequences of the programs, local banks face with big challenges toevolve their internal control systems for sustainability.

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Nội dung Text: Vietnam banking sector restructuring and challenges for local banks to evolve their internal control system

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