Techcombank continues to apply a ‘contractionary policy’, once again deciding not to pay dividends, but instead use the money to increase charter capital.
Banks have been increasing the attraction of deposits to have enough capital for the credit needs of customers. Credit demand is expected to increase from the first quarter of this year.
The decade-long power struggle at Eximbank has blocked tens of trillions of dong worth of dividends and trapped shareholders. The problem may be solved after the latest move of the foreign shareholder.
Commercial banks have agreed to slash the lending interest rate in order to help businesses and people overcome the difficulties caused by the Covid-19 crisis.
If large businesses cannot pay their debts, they may put pressure on banks to lower requirements for loans.
Commercial banks have six months to fulfill procedures to list their shares on the bourse, as requested by the Prime Minister.
Commercial banks all can anticipate a sharp fall in profits this year because of Covid-19, though they faced difficulties later than other businesses.
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).