lending

Update news lending

VN Public Security Ministry warns about online lending apps

The Ministry of Public Security has warned about the risk of black credit provided by online lending applications which could threaten social security.

 

Total assets of banks in Vietnam increase 9% to nearly US$520 billion

The total assets of commercial banks under state ownership accounted for 43.4% of the total of the banking sector, followed by joint stock commercial banks with 41.4%.

Low-cost capital plentiful, but borrowers keep glacial

 VietNamNet Bridge – The lending interest rates offered by many commercial banks have reduced to below the deposit interest rates. However, businesses don’t intend to borrow money at this moment.

Banks struggle to hit lending goal

 Significant challenges remain for the banking industry to reach the annual credit growth target this year, despite certain improvement in lending situation, State Bank of Viet Nam (SBV) officials said.

Banks buy corporate bonds instead of lending to businesses

The banks’ move of pouring big money into corporate bonds, in the eyes of analysts, is a form of providing loans to businesses. Analysts have warned that it will be very difficult to settle the bad debts from the bond investments.

Banks have capital in excess, but won’t slash deposit interest rates

 VietNamNet Bridge – If the inflation rate is curbed at 6.5 percent this year, the dong ceiling deposit interest rate would not go down to below 7 percent per annum as expected by businesses.

BUSINESS IN BRIEF 25/4

Russian firm approved for a car and bus plant; Talks on FTA with EU hit snags; Highway to project completion; Supporting industry needs to muscle up; $7bn power plan faces short circuiting

BUSINESS IN BRIEF 7/4

Foreign investor decree clarified; Fuel hike to drive up fares; Businesses turn to black market for capital; Socio-economic picture in first quarter; Vietnam turns sci-tech into key driving force

A lot of banks change hands before the Year of the Snake

VietNamNet Bridge – The banking sector has become boisterous with a lot of big shareholders selling their shares in big quantities to quit the business field. Meanwhile, a lot of hidden “big guys” have jumped on the bandwagon.

Interest rates to be slashed further, but what for?

It is highly possible that the State Bank would slash the deposit interest rate further--by one percent, to make it easier for businesses to access bank loans. However, economists have warned that this would do more harm than good.