FINANCIAL SECURITY OF VIETNAM COMMERCIAL BANKING SYSTEM FOR THE PERIOD 2010 - 2017: CURRENT SITUATION AND RECOMMENDATIONS

Abstract

The article reflects the reality of the financial security of Vietnam's commercial banking system in the period of 2010-2017. Based on secondary data collected from the report of the State Bank and based on financial security measurement indicators of the banking system, namely four typical indicators were the bad debt ratio, profitability, capital adequacy ratio, the ratio of outstanding loans to total deposits.The research results  showed that in the period of 2010-2017, although Vietnam had controlled the financial security indicators of the commercial banking system, there were still potential risks, especially in credit operations. In particular, the bad debt ratio is still high, financial and monetary supervision was not effective, so it had not contributed much to the security and financial safety of the whole system. Based on that, the article proposes a number of recommendations to enhance financial security in banking operations.

Keywords: Financial security, commercial banking, current situation