The State Bank of Viet Nam has tightened lending regulations, prohibiting credit institutions and foreign bank branches from disbursing loans in cash, effective from April 2, according to a new circular. Banks will have to provide loans to bank accounts of beneficiaries via non-cash payment instruments. - Photo vietnamfinance.vn Under Circular No. 21/2017/TT-NHNN, which stipulates the mode of disbursement of loans by credit institutions and foreign bank branches to customers, lenders will have to provide loans to bank accounts of beneficiaries via non-cash payment instruments. According to the central bank, the new circular is aimed to better supervise loans, seeking to have them comply with the stated purposes for requested loans. The disbursement of loans through bank accounts will help commercial banks supervise the use of borrowers’ loans from the beginning to avoid funds being used for incorrect purposes, such as rollovers, resulting in an increase of … [Read more...] about Banks prohibited from disbursing loans in cash
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Banks expected to record high profits
After the first two months, Tien Phong Commercial Joint Stock Bank’s (TPBank) profits after provision for risky loans nearly doubled year-on-year to VND 275.8 billion (USD 12.14 million). The bank posted outstanding loans at VND 76.78 trillion (USD 3.38 billion) and a mobilized capital of nearly 106.2 trillion VND (4.67 billion USD). Its non-performing loan ratio accounted for 0.97 percent of its total outstanding loans. The general director of an HCM City-based bank, who declined to be named, said the bank’s pre-provision profit in the first three months of the year is estimated to be roughly VND 1 trillion (USD 44 million). However, he said, in having to provision for the special bonds of the unsettled bad debts sold to Vietnam Asset Management Company (VAMC), the bank’s remaining profit in the first quarter is likely to be several hundreds of VND. With a favorable start, his bank expects a positive completion of the 2018 target. … [Read more...] about Banks expected to record high profits
Banks expected to record high profits in first quarter
The profits of many domestic banks in the first quarter of this year are estimated to rise higher than that of the same period last year thanks to significant credit growth. Illustrative image - Source: VNA After the first two months, Tien Phong Commercial Joint Stock Bank’s (TPBank) profits after provision for risky loans nearly doubled year-on-year to 275.8 billion VND (US$12.14 million). The bank posted outstanding loans at 76.78 trillion VND (US$3.38 billion) and a mobilised capital of nearly 106.2 trillion VND (US$4.67 billion). Its non-performing loan ratio accounted for 0.97 percent of its total outstanding loans. Theo VNA … [Read more...] about Banks expected to record high profits in first quarter
Vietnam, World Bank launch energy efficiency project
(VEN) - The World Bank and Vietnam’s Ministry of Industry and Trade jointly launched the Vietnam Energy Efficiency for Industrial Enterprises (VEEIE) project on March 5 to support energy-efficient technologies and practices. Consumption intensity According to the Department of Energy Efficiency and Sustainable Development under the Ministry of Industry and Trade, the national target program on energy efficiency and utilization in the 2011-2015 period cut energy consumption by 5.96 percent, equal to savings of over 11.8 million tonnes of oil. The energy consumption intensity of production industries that used to consume significant energy also dropped in the 2011-2015 period, such as steel (down 8.09 percent), cement (down 6.33 percent) and yarn (down 7.32 percent). In addition, the Ministry of Industry and Trade has certified more than 10,000 products for the energy efficiency label. Deputy Minister of Industry and Trade Hoang Quoc Vuong highlighted the efforts of the Vietnamese … [Read more...] about Vietnam, World Bank launch energy efficiency project
Banks begin tightening screws on property credit
The central bank has instructed commercial banks to maintain credit growth in these sectors within safe limits.— Photo zing.vn Huynh Quang Khanh invests in real estate by leveraging credit. Seventy per cent of his investment comes from banks. He has borrowed VND1 billion at an interest rate of 9.5 per cent from a bank in Tan Phu District and also asked some of his relatives to borrow on his behalf from that bank. Khanh, 54, of HCM City’s Tan Phu District, said he was told by the lender that the interest rate had been increased to 12 per cent. “I am looking to sell some of my land to reduce the loans because I am afraid the interest rates would continue to rise and I will be unable to afford,” he said. While Khanh complains about the increase in the rates, Nguyen Cong Tang of Thu Duc District is unhappy that a bank refused to lend him 70 per cent of the value of a house he wants to buy. He said in the past the bank was always ready to lend him the money but now … [Read more...] about Banks begin tightening screws on property credit