According to the General Statistics Office, as of September 20, the banking sector’s credit growth was 9.52 percent, much lower than the 11.02 percent rate recorded a year earlier.
The State Bank of Vietnam (SBV) will likely continue its tightened monetary policy in the remaining months of the year after its decision to strictly control lending to high risk sectors in the third quarter didn’t adversely affect the country’s economic growth, according to experts.
Success of foreign banks in Vietnam has been fueling the volume of capital poured into the sector, while these banks are changing their operations to grow.
The new restriction on banks of using only 40 percent of their short-term deposits for long and medium-term loans should not take effect next year, the Ho Chi Minh City Real Estate Association (HoREA) has said.
The State Bank of Vietnam (SBV) set the daily reference exchange rate on October 2 at 22,716 VND/USD, up 3 VND from the rate on the previous day.
Vietnam is entering the Fourth Industrial Revolution with the participation of all sectors, including the banking system; however, non-cash payment has seen development stall as the country’s population has not yet embraced its benefits.
Despite complicated changes in the world situation, Vietnam has shown strong performance in stabilizing prices and reining in inflation, keeping the average at only 3.57 percent in the first nine months over 2017.
Foreign investors have poured into Vietnam’s e-wallet sector as they see huge growth potential in the market in the wake of the Government’s plan to reduce cash payments to below 10 percent of the total payment transaction by 2020.
The State Bank of Vietnam (SBV) set the daily reference exchange rate on September 25 at 22,715 VND/USD, up 6 VND from the rate on the previous day.
The Vietnam Asset Management Company (VAMC) plans to resolve at least 140 trillion VND (5.95 billion USD) of non-performing loans (NPLs) from now until 2020, of which 34.5 trillion VND will be settled this year.
The Vietnamese Government is supportive of Lotte group’s expansion into business fields of strength, including consumer finance, Deputy Prime Minister Vuong Dinh Hue assured Chairman and CEO of the Republic of Korea (RoK)’s Lotte Card Kim Chang-kwon during a reception in Hanoi on September 6.
How to ensure financial sustainability and long-term financial services for the poor at the same time remains a headache for both policy makers and financial service suppliers.
The Government is directing ministries and agencies to raise capital for State-owned commercial banks through the use of dividends or share sales this year, Deputy Prime Minister Vuong Dinh Hue said at a recent meeting.
Cyber security is a hot issue globally and in Vietnam, concerns on the subject have been expressed by the Government and departments, especially in the field of banking – finance, said Le Manh Hung, director of the State Bank of Vietnam’s Information Technology Department.
Credit growth in the first eight months of this year rose by 8.18 percent over the end of last year, the lowest level since 2015, a report from the Ministry of Planning and Investment showed.
Credit growth had stood at about 8.18 percent as of August 15, 2018 and is expected to be curbed at around 17 percent this year, said Minister-Chairman of the Government Office Mai Tien Dung.
Many commercial banks have recently increased deposit interest rates, but experts forecast that the rise will last only a short time and won’t have a domino effect on lending rates.
The State Bank of Vietnam (SBV) needed to speed up the settlement of non-performing loans (NPLs) to bring down the bad debt ratio of the entire banking system, including both NPLs owned by credit institutions and the Vietnam Asset Management Company (VAMC), to below 3 percent by 2020.
