Several major banks have slashed their deposit interest rates by 0.5 percentage point compared to those in mid-May, right after the State Bank of Vietnam (SBV) announced two decisions further lowering key interest rates in its easing cycle.

The general audit result submitted by the State Audit to the National Assembly shows many problems in the operations of financial institutions and banks.

At a time when most businesses are facing serious losses, with some even in dire situations and having to sell off much of their assets, banks continue to announce profits of thousands of billion dongs.

The State Bank of Vietnam (SBV) has announced two decisions to further reduce policy interest rates, which will become effective from May 25, 2023.

The State Bank of Vietnam (SBV) said that interest rates have become stable with the lending interest rate hovering around 9.3 percent per annum.

By early May, commercial banks have started to reduce deposit interest rates. With this the average deposit interest rate that had peaked in January at 9 percent per year for a 6-month term decreased to around 7.5 percent per year.

The news that 60 percent of workers in the banking and insurance sectors are not satisfied about their incomes has surprised HR directors, because they are considered to be the best paid business fields in the national economy.

Vietnam's banking sector has invested over VND15,000 trillion in digital transformation by the end of 2022, according to the State Bank of Vietnam (SBV).

Even as the biggest real estate businesses struggle with debts and bankruptcy, banks continue to stay afloat and tackle the bad debt situation over a period of time. This ability of banks helps bank stocks not fall too low, despite overdue payments.

Decisive action taken by Vietnam’s central bank on restructuring failing banks signifies a considerable stride towards revamping and fostering a sound financial landscape.

Since early this year, many banks have made deep deposit rate cuts, with the rate for tenures shorter than six months reduced by 0.5 percentage point and that for longer tenures slashed by 1.5 to 2.0 points.

Many banks plan to increase their charter capital in 2023 in order to ensure operational safety and have more resources for business development.

Banks’ financial reports show that as of March 31, 286,000 employees were working at 34 domestic commercial banks. Eleven commercial banks cut staff in the first quarter of 2023, but most gave a pay rise to their workers.

The State Bank of Vietnam (SBV), the central bank, will focus on inspecting share transfers among credit institutions this year to prevent cross ownership in the banking sector.

Banks, including VietBank (VBB) and Viet Capital Bank (BVB), are expected to transfer from UpCOM exchange to the Ho Chi Minh City Stock Exchange (HoSE).

The State Bank of Viet Nam (SBV) plans to seize four weak commercial banks in a move aimed at strengthening the country's banking system.

The State Bank of Vietnam (SBV) received approval on how to deal with banks put under special control, including three banks taken over by the central bank for zero dong.

After the shareholders’ meeting season, MBBank, VPBank, HDBank, NamABank, Sacombank and ACB have emerged as the banks which have promised high remunerations and bonuses for leadership, including the boards of directors and supervisory boards in 2023.

The State Bank of Vietnam’s fresh set of policies are anticipated to ameliorate the financial strain faced by both creditors and debtors, as well as establish a robust legal framework for debt restructuring to be allocated over a two-year period.

Businesses are still up against it when it comes to applying for bank loans, even though Vietnam’s central bank has cut interest rates several times already this year.