The State Bank of Vietnam could increase credit growth limits for credit institutions this year or even launch stronger monetary policies to aid the country’s post-pandemic growth, Governor Le Minh Hung has said.
Some credit institutions (CIs) that have not yet completed their restructuring roadmap will have to speed up the process to meet the State Bank of Vietnam (SBV)’s deadline this year.
Credit grew only 1.96% as of May 29 as compared with late 2019, due to the impact of the COVID-19 pandemic, according to Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong.
Many commercial banks are proposing the central bank to extend credit growth limits as they have nearly reached the allowed threshold.
Financial firms extended loan dues for more than 223,000 borrowers whose outstanding loans stood at VND151 trillion (US$6.49 billion) by May 25, according to the State Bank of Vietnam.
The State Bank of Vietnam (SBV) is expected to further take monetary easing measures to support the country’s GDP growth target of above 5% this year in light of a weak economic outlook, experts forecast.
The State Bank of Vietnam will consider simplifying lending procedures to help COVID-19-affected firms easily access preferential interest rate loans, SBV Deputy Governor Dao Minh Tu said.
Total assets of credit institutions and foreign banks in Vietnam by the end of the first quarter of this year inched down 0.72% to VND12.48 quadrillion (US$521.76 billion) compared to the end of last year.
Remittances sent to Ho Chi Minh City reached US$1.8 billion in the first four months of this year, down 2% year-on-year, said the State Bank of Vietnam branch in the city.
Governor of the State Bank of Vietnam (SBV) Le Minh Hung has called on commercial banks to urgently simplify lending procedures to help COVID-19-affected firms easily access preferential interest rate loans.
The HCM City Department of Tourism said it has submitted to the State Bank of Vietnam a list of 31 travel and tourism firms that are seeking help to make it through the disruption caused by the COVID-19 pandemic.
The State Bank of Vietnam is completing a mobile money project to be submitted to the Government for approval this month, Governor Le Minh Hung has said.
The State Bank of Vietnam is is urgently working with relevant ministries to finalise the pilot programme of utilising telephone subscription accounts to make small payments, or mobile money.
Despite being slow, credit growth of the banking system in March recovered compared with the first two months of this year.
Incomplete statistics show that businesses have enjoyed cuts of at least VND100 trillion (US$4.25 billion) to support them amid the COVID-19 pandemic.
Banking services will remain available to meet the transaction demands of businesses and individuals, according to the State Bank of Vietnam (SBV).
The State Bank of Vietnam (SBV) on March 31 issued a directive to reduce the fees for transactions via interbank electronic payment system by 50% for local banks.
The State Bank of Vietnam (SBV) has said it is ready to intervene in the market when the intervention rate is lower than the current listed exchange rate on a large scale by spot or forward transactions to stabilise the foreign exchange market and the macro-economy.
The State Bank of Vietnam (SBV) will cut its policy rates starting from March 17 in an attempt to support the economy which has been hurt by the COVID-19 outbreak.
The State Bank of Vietnam (SBV) is to make decision soon on cutting the prime interest rate, the bank’s Deputy Governor Dao Minh Tu said at a meeting on March 12.