As of September 24, the M2 money supply had increased 8.58 percent while outstanding loans provided for the economy had grown 8.64 percent from the end of 2018 (Photo: VNA) Hanoi (VNA) – Credit has been provided for production and business activities and the priority fields while loans for high-risk areas have been further tightened so far this year, the State Bank of Vietnam (SBV) reported. At a press conference in Hanoi on October 1, SBV Deputy Governor Dao Minh Tu said the central bank has kept steering the monetary policy in a proactive, flexible and prudent manner, and coordinating it with the fiscal policy and other macro-economic policies to control inflation, support economic growth, and stabilise the monetary and forex markets. As of September 24, the M2 money supply had increased 8.58 percent compared to the end of 2018. The liquidity of the credit organisation system has been ensured. For 2019, the SBV targets that the M2 money supply and credit will grow … [Read more...] about Capital funneled into priority fields: central bank
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The Monetary Authority of Singapore (MAS) manages monetary policy through exchange rate settings, rather than through interest rates. (Photo: todayonline.com) Hanoi (VNA) – Singapore on October 14 decided to ease monetary policy for the first time in more than three years as the national economy has narrowly avoided recession in the third quarter of 2019. The decision came after the US-China trade war has taken its toll on the export-reliant economy of the city-state. Singapore has been the first among export-driven economies in Asia to be affected during a downturn, making it a closely watched barometer of demand for goods and services for the rest of the region. The Singaporean economy has been hard hit in recent months, with growth rates and exports falling, as the US-China trade tensions upend the global trading system. The Monetary Authority of Singapore (MAS) – the country’s central bank - joins others around the world in loosening policy as fears mount of a … [Read more...] about Singaporean central bank eases monetary policy
16:10 | 13/09/2019 VGP – The State Bank of Viet Nam has issued Decision No. 1870/QD-NHNN on reduction of official interests rates, applicable since September 16. The facade of the State Bank of Viet Nam Specifically, the annual refinancing rate will be decreased by 0.25% percentage points to 6% from currently 6.25%. The annual rediscount rate will be lowered to 4% from the current 4.25%, according to the decision. The central bank also decided to slash overnight electronic interbank rate and rate of loans to offset capital shortage in clearance between the bank and credit institutions from the current 7.25% to 7%. The latest decision was made in line with foreign and domestic economic situation in order to contribute to ensuring macro-economic stability and controlling inflation as mandated by the Government./. The current interest rates were introduced in July 2017 under the Decision No.1424/QD-NHNN./. By Quang Minh … [Read more...] about Central bank slashes interest rates, applicable since Sep. 16
As of September 24, credit growth had expanded 8.64 percent compared to the end of 2018, the lowest increase in recent years. (Photo: VNA) Hanoi (VNS/VNA) – Vietnam’s credit growth is slowing and can fall behind the central bank’s target of 14 percent for 2019, causing concerns that it could make it difficult for businesses to access bank loans during the remaining months of the year. According to the State Bank of Vietnam (SBV), as of September 24, credit growth had expanded 8.64 percent compared to the end of 2018. The rate was the lowest increase in recent years, even lower than the 9.52 percent rise during the same period in 2018. In the SBV’s September survey on business trends at credit institutions, many credit institutions also forecast that 2019 credit growth would increase by 13.61 percent this year, lower than the central bank’s 14 percent target. Growth has been slow in recent months. At the end of June, credit had increased by 7.33 … [Read more...] about Credit slowdown causes concern about access to bank loans
All banks in the country have to adopt the standard version of Basel II and then switch to the advanced version by 2025. — Photo baokiemtoannhanuoc.vn In 2016 the State Bank set a deadline of January 1, 2020, for 17 banks to meet Basel II norms under a national banking sector development strategy. Also, by 2025 all banks in the country have to adopt the standard version of Basel II and then switch to the advanced version. Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. It comprises minimum capital requirements, supervisory review and market discipline to enhance competition and transparency in the banking system and make banks more resistant to market changes. Basel II requires banks to have a capital adequacy ratio (CAR) of at least 8 per cent. However, the SBV has allowed 10 banks to adopt Basel II standards earlier than the 2020 deadline. They are Joint Stock … [Read more...] about Basel II deadline rapidly approaching, are banks on course to meet norms?