There has been a major reshuffle in profit rankings at the top of the banking industry due to the effects of the pandemic and provisioning for bad debts.
Vietnam has seen a digital wave in the finance-banking industry, with many lenders investing significantly in digitisation, experts have said.
Despite a worldwide economy hit hard by the COVID-19 pandemic, the banking sector has still enjoyed a good first half of the year and are on course to meet targets.
The banking sector is building a credit support programme with a value of 285 trillion VND (over 12.2 billion USD) for firms hit by the epidemic of the acute respiratory disease caused by the SARS-CoV-2 (COVID-19), in an attempt to help ease their difficulties, according to an official of the State Bank of Vietnam.
Besides reducing transaction fees and rescheduling loans, local banks have begun to cut deposit rates as part of a broader plan to lower lending rates in the future to help businesses cushion the impact of Covid-19.
Many banks have announced the recruitment of a large number of personnel to meet business expansion plans in 2020.
Commercial banks operating in the country have been asked not to increase their interest rates, including deposit rates, while the central bank stands ready to provide liquidity support for banks affected by the fast spreading coronavirus.
This was the main topic of a workshop themed “Managing third-party risks under Circular 18” held in Hanoi by the Vietnam Banks Association, together with PwC Vietnam and PwC Vietnam Cyber Security Services Co., Ltd.
Banks are reporting better profits for the third quarter this year, with Vietcombank leading the way despite the predicted slowdown in credit growth.
Most domestic credit institutions and foreign banks’ branches in Vietnam expect their business performance in 2019 to be better than last year despite the predicted slowdown in credit growth, according to the State Bank of Vietnam's latest survey released late last week.
Commercial banks are expected to lower lending interest rates after getting more support to cut input costs from the State Bank of Vietnam (SBV)’s agencies this week.
Profit growth of Vietnamese banks in 2019 is forecast to be lower than last year, but experts say this should not be cause for concern.
The State Bank of Vietnam (SBV) has directed commercial banks to tighten control over credit card payments to prevent the improper use of credit cards.
Banks have increased their interest rates on certificates of deposit (CDs), bringing them in excess of 10 percent per year with the aim of mobilising long-term capital.
A plan to allow large Vietnamese State-owned commercial banks to pay dividends in shares or retain dividends would help them accumulate capital and meet regulatory minimum capital thresholds, Fitch Ratings has said.
Banks will assess environmental pollution risks when granting loans to projects in some industries, according to a State Bank of Vietnam (SBV) draft regulation.
Many banks have recently announced they will recruit a large number of personnel to meet their business expansion plans in 2019.
Banks and insurance companies are ramping up cooperation in selling life insurance products (bancassurance) to cash in on the high growth segment as some have posted annual triple-digit growth rates in the business.
Many banks have seen their employee efficiency increase significantly, with each member of staff earning them more than 1 billion VND (43,000 USD) in pre-tax profit on average last year.
Governor of the State Bank of Vietnam (SBV) Le Minh Hung was questioned on the pace of handling bad debt and banks with bad performances during the question-and-answer session on November 1 at the 14th National Assembly’s ongoing sixth session.