Latest News about commercial banks
If large businesses cannot pay their debts, they may put pressure on banks to lower requirements for loans.
Many commercial banks are proposing the central bank to extend credit growth limits as they have nearly reached the allowed threshold.
Commercial banks all can anticipate a sharp fall in profits this year because of Covid-19, though they faced difficulties later than other businesses.
Banks have been warned of a sharp profit decline because of minus credit growth and higher provisions against risks.
Banks are ready to seize business opportunities in the coming months as the COVID-19 pandemic has been basically controlled in Vietnam and domestic production and business are expected to accelerate soon.
Low demand for capital due to COVID-19 has caused bank credit in the first half of April to drop 0.5 percent compared with the end of March, according to the State Bank of Vietnam (SBV).
The Ministry of Finance has asked insurers to stop introducing and selling insurance packages related to COVID-19.
The US dollar on March 25 depreciated against the Vietnamese dong after the State Bank of Vietnam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.
By March 17 noon, most of the commercial banks in Vietnam had lowered their interest rates on savings accounts with terms of less than 6 months after the State Bank of Vietnam (SBV) announced its policy rate cut a day earlier.
Credit growth of the banking system in the first two months of this year reached only 0.06 percent, slowing significantly against the 1 percent rate in the same period last year, due to impacts of the COVID-19 epidemic.
Seventeen out of 45 commercial banks slashed the fees for interbank transfers of small sums worth less than VND500,000 ($21.5).
The Vietnamese banking sector will have more opportunities to improve its financial capacity as well as learn modern business models and management from their EVFTA takes effect, according to insiders.
Twelve out of 40 commercial banks have so far cleared all their non-performing loans (NPLs) kept at the Vietnam Asset Management Company (VAMC).
The Vietnamese finance market has seen many investment deals by foreign investors who have poured money into startups, showing the attractiveness of the new industry.
Thirteen commercial banks and securities firms will be allowed to join the debt market or Government bonds (G-bonds) market in Vietnam this year.
Eighteen commercial banks are listed on the bourse, but only one bank entered the bourse in 2019.
Though the fiscal year 2019 is yet to end, early reports suggest major commercial banks in Vietnam will enjoy big fat earnings this year.
After the lending model collapsed in China, many P2P lenders flocked to Vietnam to seek opportunities in the country.