|
Banks restructuring workforce amid financial crisis
Banks, nowadays, are not the hub they used to be when they would lure a talented labor force, like they did two years ago. A lot of banks are planning to cut down the workforce.
Bank interest rates have been decreasing, clients are paying off bank debts before maturation to get new loans at lower interest rates, and banks are finding it difficult to push up credit; all of these are what banks have to face these days.
The difficulties in operation have prompted banks to restructure their apparatus, and cutting jobs is one of the measures they are considering.
Dau tu chung khoan has reported that a medium-sized bank, headquartered in Hanoi, is planning to cut 30 jobs in its HCM City branch. The reasons for this plan include the difficulties in operation, which have led to the low growth rate in turnover. The bank has also had to cancel their plan to open more transaction points in order to cut down expenses.
General Director of Asia Commercial Bank (ACB), Ly Xuan Hai, said that by the end of 2008, the bank has 193 transaction points. ACB plans to open 45 new transaction points in 2009. It is also considering setting up more transaction points which can receive investors’ orders, serving the operation of the ACB gold trading floor.
However, Hai said that ACB will not employ more staff to serve the expansion plans. Hai said that ACB will restructure the labor force it has, while it will also not dismiss any staff.
Over the last three years, since the finance and banking markets boomed, banks have rushed to expand their operation networks. Not only aiming at central areas, the banks’ networks have also reached out to all provinces and cities nationwide. In general, bank branches and transaction points will bring turnover to banks after six months they become operational.
Nevertheless, bankers said that over the last year, new bank branch openings have brought more loss than profit, due to the high deposit interest rates, while it is very difficult to push up loaning. Besides, the expenses on workshop premises and salaries for staff have increased dramatically.
Sacombank, a bank with one of the largest operation networks in Vietnam, also said that it has narrowed their plan on recruiting more staff. Sacombank currently has 240 branches and transaction points throughout the country, while it hopes to see the network cover all 63 cities and provinces nationwide by 2010.
Chairman of Sacombank, Dang Van Thanh, said that the bank has not have any detailed plans for the network expansion in 2009. Thanh said that the bank will restructure the workforce and narrow the recruitment plans. The staff that was employed in the last year and have become redundant will be allocated to the new companies, including Sacombank gold, silver and precious stone company.
Analysts believe that banks will have to cut down jobs in the difficult period; however, they do not think the picture of the labor force market will be overly gloomy. While domestic banks are trying to cut down jobs and cancel their recruitment plans, some foreign banks that are going to open 100% foreign-owned bank entities in Vietnam, are recruiting more staff and expanding networks.
DTCK
|
