Latest News about banks
Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period.
New approaches, especially regarding activities of banks, are required to boost the reach of mobile money agents and expand financial inclusion in Vietnam.
Banks, especially State-owned banks, are expected to increase their capital significantly this year as they are allowed to retain profits or pay dividend in shares instead of cash as previously.
Vietnam’s early efforts to weather the COVID-19 storm have helped its economy to reopen much sooner than others, with many sectors that have suffered badly from the outbreak – from retail to finance –now recovering with poise.
Banks have embarked on the conversion of magnetic payment cards into chip cards for greater security, but the COVID-19 pandemic has significantly slowed down their efforts, making it difficult for them to meet the deadline.
The Ministry of Finance has slashed administration fees in numerous sectors to help the economy get back on its feet when the COVID-19 pandemic eases.
Many travel firms affected by Covid-19 are struggling to access loans with low interest rates from the Government’s credit package as banks have denied their applications out of concern over their ability to repay the debt
Many banks in Ho Chi Minh City are selling their mortgaged assets, mainly properties worth trillions of Vietnamese dong, to speed up the resolution of bad debts.
Incomplete statistics show that businesses have enjoyed cuts of at least 100 trillion VND (4.25 billion USD) to support them amid the COVID-19 pandemic.
Thirty-seven commercial banks have confirmed the reduction of fees for fast interbank fund transfers following the move of the National Payment Corporation of Vietnam (NAPAS) to halve the switching fees for local banks from Wednesday.
Though the unofficial value of the VND has now fallen about 3 percent against the USD, the rate is still a smaller depreciation than that seen by most of Vietnam’s regional peers and is expected to stabilise around that level.
Local lenders are considering waiving interest rates of outstanding loans worth VND185 trillion (US$7.94 billion) for 34,350 customers.
Another 15 commercial banks have slashed fees for interbank transfers of small sums worth less than VND500,000 (US$22) on March 4.
On February 7, the banking sector’s outstanding loans fell by 0.38 per cent for the year, while overdue debts and non-performing loans showed signs of rising.
Capital difficulties are putting pressure on some banks struggling to meet the central bank’s Basel II deadline of early next year, but experts suggest the central bank should not delay the process.
Many local banks have released impressive business results, with many of them being confident that their pretax profits would exceed their targets for 2019.
It is a rare combination where Vietnamese banks are growing fast and are quite profitable, said an expert at JP Morgan.
The State Bank of Vietnam (SBV) has warned commercial banks of the risks associated with accepting land-use rights certificates as collateral for loans.