Heads roll in wave of bank woes

The banking industry has experienced a roller-coaster year, with concerns over the sector's liquidity and pressure on high interest rates adding to a long list of woes.

State Bank forms advisory panel of top commercial banks

The State Bank of Viet Nam plans to establish a standing group of 12 leading commercial banks which represent 85 percent of market share to address issues that arise in the banking system.

The group, to be known informally as G12+1, will meet every three months or as required to improve interaction between the banking system and monetary policymakers.

However, the establishment of the G12+1 is seen as the latest step by the central bank to force commercial banks to comply with interest rate regulations, with State Bank of Viet Nam Governor Nguyen Van Binh recently reiterating his intention to punish banks violating the deposit interest rate cap of 14 percent per year.

Lending rates cut following State Bank ruling

Several commercial banks have cut loan interest rates by 1.5-2 percentage points to 17-19 percent a year, following their agreement on interest rate cut made late last month in pursuant to the State Bank of Vietnam's instruction.

Bank for Investment and Development of Vietnam (BIDV) on Sept. 5 cut interest rates on short-term loans to 18 percent and for mid- to long-term loans to 19 percent a year.

Shares recede after two-day rally

Shares slumped on both of the nation's stock markets on Dec. 16, led by a number of banking shares which receded from two prior days of gains.

Banks expected to reduce interest rates

Commercial banks are expected to lower interest rates on deposits and loans in compliance with the State Bank of Vietnam's Circular 19, which took effect on October 1.

New shares debut on Hanoi bourse

The Hanoi Stock Exchange on Sept. 13 welcomed new listings by Nam Viet Bank (NVB), IDJ International Financial Investment and Enterprise Development Co (IDJ) and Asia Pacific Investment Co (API).

Undercapitalised banks face closure

Commercial banks and other credit institutions which do not have plans to increase charter capital to regulated higher levels by the end of this year will be closed down – or required to merge or be acquired by a larger institution, according to a message issue by the State Bank of Vietnam on May 11.