VietNamNet Bridge - Economists believe that Vietnam’s emerging economy needs a sufficient number of commercial banks to satisfy people’s demand, and that more than 30 banks is ‘more than enough’. A series of bank merger & acquisition (M&A) deals were made in the first six months of the year. Phuong Nam Bank was merged with Sacombank, MHB with BIDV, and PG Bank has been admitted by VietinBank and Mekong Bank by Maritime Bank. The World Bank, in its updated report about Vietnam’s economy in the first half of 2015, noted that unlike previous years, when Vietnam mostly witnessed the M&A deals among small banks, some ‘big guys’ like BIDV and VietinBank appeared in bigger deals this year. In the Phuong Nam – Sacombank M&A deal, Le Hung Dung, who represents Eximbank’s capital in Sacombank, said that the deal would bring big benefits. After the merger, Sacombank has chartered capital of over VND18 trillion … [Read more...] about Does bank restructuring mean fewer banks?
Bank deals new account
Banks reactivate asset management firms Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC – Local commercial banks have activated their asset management companies (AMC) again to tackle mounting debts after leaving the units in a sluggish situation for a long time. Earlier this week, Vietnam Asset Management Company (VAMC) sent documents to State-owned banks and banks with high non-performing loan ratios, asking them to suggest bad debts that need to be sold to VAMC. While Agribank is ready to sell debts to VAMC, the three remaining State-run banks have yet to give any feedback. These banks are still busy checking operations of their AMCs, which have been in sluggish operation over the past two years. Aside from the AMC of VietinBank that has been rather active in handling mortgaged assets for secured loans, AMCs of Agribank, BIDV and Vietcombank have been performing poorly in recent times. Over the past 13 years, administering agencies have failed to pay adequate … [Read more...] about Banks reactivate asset management firms
Central bank says forex rate will stay put Thuy Trieu By Thuy Trieu - The Saigon Times Daily HCMC – The central State Bank of Vietnam has pledged to keep the foreign exchange rate between Vietnam dong and the U.S. dollar unchanged in the rest of the year as factors are positive for maintaining the rate. In an apparent move to douse the gradual heating of forex rates last week, the central bank says on its website that “there is no basis to revise (up) the foreign exchange rate and (the SBV) will not revise up the exchange rate from now to the end of 2013.” The rates quoted at banks as well as on the unofficial market last week tended to rise, but the central bank said it was still within the regulatory trading band. The rate at Vietcombank last Friday was VND21,130 to the dollar, a slight rise of VND15 against the previous day, while at Eximbank, one dollar was sold for VND21,135. The central bank said the rate on the inter-bank market has been stable, at only … [Read more...] about Central bank says forex rate will stay put
Bank hacks in Vietnam and Bangladesh have sparked concerns within global banks, some of which are privately pressing the Swift interbank network to shore up security at its 11,000 members. The pressure on Swift comes as new details emerge from the most recently disclosed bank hack. An examination of the malware used in an attack late last year on Vietnam’s Tien Phong Commercial Joint Stock Bank shows that unique Swift codes identifying at least seven additional financial institutions were embedded in the hackers’ work, according to a private report by BAE Systems Plc. The list includes major banks in Asia and at least one in Europe, including what two people familiar with the list said were banks where the Vietnamese lender had correspondent accounts. The malware wasn’t used to attack those banks, said one person familiar with the situation. Rather, it deleted money-transfer confirmations sent between the Vietnamese bank and its partners that could have alerted bank … [Read more...] about Bangladesh, Vietnam bank hacks put global lenders on edge
The State Bank of Vietnam (SBV) on January 4 launched the daily average inter-bank exchange rate between the Vietnam dong and the U.S. dollar and reference exchange rates between the dong and some other foreign currencies. The move is in line with the central bank’s Decision No. 2730/QD-NHNN dated December 31, 2015, which took effect on January 4. Based on the average inter-bank exchange rate, local banks and foreign bank branches in Vietnam that provide forex services can quote their dollar buying and selling prices on a daily basis. This rate depends on fluctuations of the average inter-bank exchange rate, developments on world forex markets having close trade, lending, borrowing and investment ties with Vietnam and macro-economic conditions. It must be compatible with Vietnam’s monetary policy targets. A deputy general director of a bank said this rate will depend on a basket of eight hard currencies, and on dollar supply and demand on … [Read more...] about VN central bank applies daily reference exchange rates