Currently, in the banking system, there are still 12 banks with charter capital of less than VND4 trillion (US$179.4 million). This source of capital is modest because in the context of fierce competition, banks need a strong financial capacity to boost lending activities and trade support as well as to invest in infrastructure such as information technology system and business-related services. … [Read more...] about SBV encourages M&As to restructure banks
The SBV's order follows Prime Minister Nguyen Xuan Phuc’s directive for ministries to help businesses cope with the economic fallout from the coronavirus outbreak Nevertheless, Hung of the SBV stated that the central bank is not planning any cuts in its policy interest rates at the moment due to the lower demand for lending and high ratio of liquidity at banks. … [Read more...] about SBV orders banks to cut or delay interest payments to cushion economy
Bui Quang Tin, professor at the HCM Banking University, told the Dau tu (Vietnam Investment Review) that some companies sold bonds to banks to restructure their existing loans rather than raise new capital, which defeated the original purpose of bond issuance. … [Read more...] about SBV tightens corporate bond purchase by banks
Deputy Governor Dao Minh Tu of the SBV said that as the liquidity of the banking system is currently abundant and banks do not lack capital, commercial banks are not allowed to raise interest rates, even mobilizing interest rates. If necessary, the SBV will adjust the benchmark interest rate, thereby indirectly helping banks to lower interest rates to support enterprises during the Covid-19 outbreak. He also noted that the whole banking system needs to ensure activities to happen normally. Commercial banks need to implement solutions, such as restructuring debts, outstanding loans, and repayment period and considering to lower interest rate. Currently, several banks have joined in helping enterprises affected by the Covid-19. Vietcombank cut interest rate by 1-1.5 percent per annum for credit outstanding balance in Vietnamese dong, depending on term; by 0.5-0.75 percent per annum for credit outstanding balance in US dollar; by 1 percent per annum for new loans in Vietnamese dong and … [Read more...] about Banks offer preferential interest rates for enterprises affected by Covid-19
In late January, the exchange rate quoted by banks was VND23,100/23,270 per dollar, increasing by VND20 and VND40 per dollar, while the dollar price in the free market was VND23,200/23,300 per dollar, increasing by VND30 and VND120 compared with the end of 2019. In late January, the exchange rate quoted by banks was VND23,100/23,270 per dollar, increasing by VND20 and VND40 per dollar, while the dollar price in the free market was VND23,200/23,300 per dollar, increasing by VND30 and VND120 compared with the end of 2019. … [Read more...] about How will exchange rate and interest rate be affected amid Covid-19 outbreak?