Vietnamplus

The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.

Lawmakers adopted Resolution on economic restructuring plan for the 2021-2025 period with 460 out of 465 approval votes during the ongoing second session of the 15th legislature in Hanoi on November 12.

The State Bank of Vietnam (SBV) has officially approved plans to increase charter capital of many State-owned and private banks.

From now until the end of the year, the State Bank of Vietnam will review and consider revising credit growth targets for credit institutions and priority is expected to be given to those that reduce loan interest rates.

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has announced plans to increase its charter capital to more than 20.273 trillion VND (879.48 million USD) by paying dividends for 2020 in shares and an employee stock option plan.

Techcombank has reported before-tax profit of 5.5 trillion VND (238.1 million USD) in the first quarter of the year, increasing 76.8 percent from the same period last year.

Credit limit is determined on own capital, so if banks fail to increase their capital, it’s hard for them to lend money.

The Technological and Commercial Joint Stock Bank (Techcombank) has reinforced the strength of its customer centric strategy in delivering strong 2020 financial results.

Currently, more than 20 commercial banks are adopting the standard version of Basel II, of which 12 have completed all three Basel II pillars ahead the deadline, namely VIB, Vietcombank, SeABank, VPBank, TPBank, MSB, VietCapitalBank, Shinhan Vietnam, SHB, LienVietPost Bank, HDBank, and Viet Capital Bank.

The Vietnam Joint Stock Commerical Bank for Industry and Trade (VietinBank) reported pre-tax profit of 16.45 trillion VND (712.4 million USD) and a bad debt ratio of under 1 percent for 2020.

Banks are facing major challenges to carry out their capital increase plans this year due to the impacts of the COVID-19 pandemic.

The Southeast Asia Commercial Joint Stock Bank (SeABank) said it has completed the second pillar of Basel II standards, which is supervisory review.

The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) planned to increase its chartered capital from its accumulated profits or paying dividend by stocks. The plan is being completed by the competent State agencies to complete the legal procedures for implementation.

Credit institutions in Vietnam settled more than 26.94 trillion VND (1.17 billion USD) of non-performing loans (NPLs) in the first quarter of this year.

The Vietnam Maritime Commercial Joint Stock Bank (MSB) said it has completed the second pillar of Basel II standards that is supervisory review nearly one year ahead of the schedule set by the State Bank of Vietnam.

The Government has finally announced a roadmap to increase charter capital for large State-owned banks in the first quarter of this year.

The Southeast Asia Joint Stock Commercial Bank (SeABank) on January 8 announced a before-tax profit of more than 1.39 trillion VND (59.8 million USD) in 2019, jumping 123.4 percent from the previous year.

Banking experts are of the view that despite some relaxation for banks that failed to meet Basel II standards, the State Bank of Vietnam (SBV) should stay firm to the Basel II target. ​

The application of Basel II is considered the fundamental restructuring solution creating the foundation for promoting the safety, healthy development and competitiveness of the banking system.

Capital difficulties are putting pressure on some banks struggling to meet the central bank’s Basel II deadline of early next year, but experts suggest the central bank should not delay the process.