The level of dollarization of an economy is based on the ratio of foreign currency deposits to total money supply (M2), or total deposits; and the ratio of outstanding foreign currency loans to M2, or total outstanding loans.

The State Bank of Vietnam’s latest move to reduce interest rates comes after other central banks around the globe have started easing to combat spreading weaknesses, but experts are warning that such decisions may not yield the desired effects.

Personal deposits saw the first decline of VND14 trillion (US$603.08 million) in July, after growing in six consecutive months.

Commercial banks are expected to lower lending interest rates after getting more support to cut input costs from the State Bank of Viet Nam (SBV)’s...

Many M&A deals in the banking sector have wrapped up recently amid continued influx of foreign investment in Vietnam.

Applauding the State Bank of Vietnam’s move to cut the prime interest rate, experts said the 0.25 percentage point cut, however, is relatively modest.

Some small banks in Vietnam are seeking investors from Asia such as South Korea, China and Japan.

Forty percent of bonds issued by banks are bought by securities companies, but analysts believe that the real bond holders are commercial banks.

Established six years ago by the government, the Vietnam Asset Management Company (VAMC) has not been very effective.

The 11 top commercial banks have total assets of over $10 billion, while nearly 15 smallest banks have l total assets of less than VND100 trillion. The rankings of banks have changed a lot over the last decade.

Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say.

Experts attributed the success in the fight against the dollarization in the economy to the central bank’s effective policies, including the zero percent dollar deposit interest rate and the foreign exchange stability.

Overseas remittances to HCM City were estimated to reach $3.45 billion in the first eight months of this year, according to the State Bank of Vietnam’s HCM City branch.

Most currencies have depreciated against the US dollar but the Vietnam dong value has remained stable.

With an annual 20-30 percent growth rate, the consumer credit market has become an attractive sector.

The State Bank of Vietnam (SBV) said it will closely monitor interest rates offered by credit institutions and take measures to strictly handle violations of the law, including cutting credit growth targets.

While the EVFTA and CPTPP have paved the way for Vietnamese enterprises to penetrate the world market, high taxes and interest rates have blocked their path.

The State Bank of Viet Nam (SBV) has instructed local banks to better control risks in corporate bond investment, especially bonds of real estate firms.

Initial encouraging results have occurred after efforts were made to reduce the need for capital from banks where the state holds the controlling stake.

Vietnam is following a skeptical interest rate policy, with few and minor adjustments.