return icon Vietnamnet.vn

Vietnam may loosen monetary policy to support economic growth

In the first days of the Year of the Rat, the economy has been experiencing unfavorable conditions because of the coronavirus outbreak, originating from Wuhan City, China.

Doanh Nhan Sai Gon quoted experts as predicting that SBV, like other central banks, would continue loosening monetary policy in order to support economic growth and cope with geopolitical risks, as well as overcome the unforeseen nCoV outbreak.

 

{keywords}

The VN Index dropped by tens of points in the first trading sessions of the Year of the Rat because of coronavirus.

 

 



The 14 percent credit growth rate has been set for 2020, but they believe that the central bank may adjust the figure and expand credit to support the economy.

After a lot of cuts in the last months of 2019, the interest rates are expected to be stable in 2020, or continue to decrease slightly to help businesses overcome the increasingly high risks. SBV may decide to slash the prime interest rates and make capital cheaper for commercial banks.

The monetary policy loosening will also have positive impact on the banking operation. Commercial banks are believed to continue seeing stable growth in 2020, following a good performance in the last three years.

The monetary policy loosening will also have positive impact on the banking operation. Commercial banks are believed to continue seeing stable growth in 2020, following a good performance in the last three years.

Along with the increasingly expanded credit scale, profitability ratio improvement thanks to lower capital mobilization cost and the progress in bad debt settlement, the proportion of banks’ revenue from services in total revenue has increased thanks to the launch of new products such as bancassurance and digital banking products.

After successfully increasing chartered capital, banks now can improve their financial strength and risk management capability, while they have more more capital for business.

Most recently, three out of the ‘big four’, namely Vietcombank, VietinBank and Agribank, have committed to continue increasing their capital this year. Prior to that, BIDV successfully raised its capital in late 2019 after a huge share sale deal to a foreign investor.

The new monetary policy, together with the low interest rates, will not only support the business circle, but also help maintain the purchasing power of the private sector, thus making a big contribution to economic growth and ensuring the government’s capability of mobilizing capital at low costs through the bond market.

In 2019, the government bond yield decreased to a record low and is believed to continue this year. If so, the government would be able to expand the fiscal policy again.

Meanwhile, the stock market would also get benefits from the monetary policy loosening, though the VN Index dropped by tens of points in the first trading sessions of the Year of the Rat because of coronavirus.

In the latest news, Deputy Governor Dao Minh Tu has told commercial banks not to raise interest rates, including deposit interest rates, affirming that liquidity is strong and capital shortage doesn’t exist.

Linh Ha 

 

Vietnam’s stock market turns 20 years old in 2020

Vietnam’s stock market turns 20 years old in 2020

Despite its young age, the Vietnamese stock market has made great contributions to economic development in the last 20 years.

Vietnam’s stock market overreact to nCoV outbreak

Vietnam’s stock market overreact to nCoV outbreak

Chair of the State Securities Commission (SSC) Tran Van Dung commented that the investors have ‘overreacted’ to the nCoV outbreak, believing that the market will recover when the epidemic peaks, as it happened with SARS and H5N1.

MORE NEWS

The man who helps Vietnamese find their biological parents

Do Hung Phuc’s joy is to help those who lost their parents at birth to find their roots. In three years, the young man has created many magical and emotional reunions.

US increases coffee imports from Vietnamese market

The market share of Vietnamese coffee as part of the United States’ total imports increased from 8.95% to 9.6% during the opening four months of the year, according to statistics compiled by the General Department of Vietnam Customs.

Teenager specializes in diaphonization of animals

Two years ago, after he saw images of diaphonized specimens on the internet, Nguyen Tien Minh Duy, 15, from Buon Ma Thuot City began searching for information and learning about diaphonization.

Universities use ‘conflicts’ to help students learn more about business

Future schools need to be good at designing experiences for students to help them in their career and purpose, Lee Newman from Spain’s IE University said in an interview with VietNamNet.

Famous painter Bui Xuan Phai's works on display for first time

Sixty works by late famous painter Bui Xuan Phai, many of which were created toward the end of his life, are on display in Ho Chi Minh City.

5-year-old Hanoian conquers highest mountains in Vietnam

Dang Quang Vinh, together with his parents, has climbed the five highest mountains in Vietnam, including Lao Than, Lung Cung and Nhiu Co San, which even adults dare not climb.

Belgian comic artist, musician to attend Hue Festival 2022

Belgian comic artist Dany and musician-singer Konoba will represent artists from the Wallonie-Bruxelles region at Hue Festival 2022, according to the Wallonie-Bruxelles delegation in Vietnam.

Family has 3 kids with small stature

The family of Doan Thi Nhan in Hoang Viet hamlet, Tan Phuoc commune of Tan Hong district in Dong Thap, in the Mekong Delta, has a number of children with small stature.

Vietnamese player wins first int’l badminton title at Croatia Open

Vu Thi Anh Thu of Vietnam secured a gold medal in the Croatia Open badminton tournament on June 23 in Dubrovnik.

Face masks and community immunity

Recently, I visited a government agency. The security guards, who were not wearing face masks, did not allow me to enter the agency because I did not have a mask.

Indian naval ships start three-day visit to HCM City

Two Indian naval ships carrying with more than 500 crewmembers arrived at Nha Rong Wharf on June 24, beginning a three-day friendship visit to Ho Chi Minh City.

VIETNAM BUSINESS NEWS JUNE 24

Efforts made to boost seafood cooperation between Vietnam, India

VIETNAM NEWS HEADLINES JUNE 24

NA Chairman Vuong Dinh Hue to begin European tour this weekend

World’s first zero-emission boat visits HCM City

Energy Observer – the world’s first hydrogen-powered, zero-emission vessel that is self-sufficient in energy – continues its journey in Southeast Asia, with the 73rd stopover of its round-the-world Odyssey being in Ho Chi Minh City, Vietnam.

21 foreigners deported for illegally entering Vietnam

Today, Ho Chi Minh City Police said that 21 foreigners who have been detected entering the country illicitly and arrested in the city recently were deported.
back_to_top