VOV.VN - The State Bank of Vietnam will intensify the supervision of implementing interest rates and credit programs of credit institutions whilst also strictly handling relevant infringements.
Green credit is a trend in the global banking and finance industry and more Vietnamese banks are following suit.
Instead of the modest contribution made previously, the insurance business segment, or bancassurance (banks co-operate with insurers to sell insurance products), has now become the main source of income from service activities for many banks.
VOV.VN - Twelve out of the 25 commercial banks that have announced half-year financial reports achieved more than 50 per cent of the annual profit target within the first half of this year.
Though many banks have posted positive profits in the first half of 2019, their bad debts have continually increased in the wake of high credit growth in risky business segments.
Some banks have unexpectedly announced they would cut interest rates on VND loans in the Government’s priority sectors to support firms in 2019, starting from August 1.
Domestic banks have unveiled positive business performance results in the first half of this year, with some new records being set.
Though there remains six months, some banks have almost used up the assigned quota for the whole year, and experts said it would be difficult for the banks to get an expansion approval from the State Bank of Vietnam (SBV).
The State Bank of Vietnam (SBV) and credit institutions are set to augment efforts in the coming time so as to promote people and businesses’ access to credit.
Commercial banks now are pouring money into digitalization in order to satisfy clients’ requirements amid financial technology breakthroughs.
The foreign exchange market in Vietnam has heated up recently when the daily reference exchange rate set by the State Bank of Vietnam (SBV) continuously climbed to new record levels and the VND/USD rates listed at commercial banks also surged.
The financial capacity of Vietnam’s credit institutions has solidified in recent years, with their charter capital reaching 578.9 trillion VND (24.85 billion USD) by the end of the first quarter 2019.
VOV.VN - Commercial banks have been proactive in handling bad debts with many posting an increasing ratio.
The State Bank of Vietnam (SBV) will grant more autonomy in terms of capital mobilisation and lending to commercial banks, SBV Deputy Governor Dao Minh Tu said on May 16.
VOV.VN - Credit growth was at a slower pace during the first quarter of this year, signaling the economy’s falling reliance on credit yet hampering the overall performance of commercial banks.
Despite earning decent profits, some commercial banks have opted not to pay any dividends, prompting frustration among shareholders at recent annual general meetings, reported Thanh Nien newspaper.
Many banks had to sell a large amount of NPLs to the Viet Nam Asset Management Company (VAMC) in the past few years to meet the central bank’s requirement of keeping their NPL ratio below 3 per cent of all outstanding loans.
VOV.VN - Commercial banks have pledged to provide enterprises in Ho Chi Minh City with VND279 trillion (US$11.99 billion) in loans under the bank-enterprise linkup programme this year, heard a conference held in the city on April 18.
The Government should help Vietnamese banks lure capital and experience from prestigious foreign banks so as to help local firms develop sustainably, experts said.
Money collection services have brought big money to commercial banks.