Bank

The State Bank of Vietnam (SBV) said it will closely monitor interest rates offered by credit institutions and take measures to strictly handle violations of the law, including cutting credit growth targets. The SBV says it will narrow banks' credit growth targets if the banks violate regulations This is main part of the SBV’s new document on mobilisation interest rates of credit institutions. It was made as many commercial banks are racing to mobilise capital, luring customers with deposit interest rates of up to more than 9 percent or 10 percent per year. According to economist Nguyen Tri Hieu, the central bank’s move is a timely effort to stabilise the money market and interest rates. Hieu said commercial banks’ increase of deposit interest rates means demand for capital is rising to meet their credit growth targets. “In the current period, this increase is made up after the central bank issued regulation of reducing the ratio of short-term capital … [Read more...] about VN central bank warns credit institutions over rate hikes

Illustrative image (Source: VNA) Hanoi (VNA) – The Government has issued a decree specifying regulations on administrative fines for violations in the monetary and banking sectors. Under Decree 88/2019/ND-CP, a warning will be issued to individuals who buy or sell foreign currency amounting to less than 1,000 USD, or buy or sell foreign currency valued at under 1,000 USD at unlicensed agencies. Similar punishments will also be applied to those who pay for goods or services with a foreign currency equivalent to less than 1,000 USD. Similar violations for between 1,000 USD and 10,000 USD will be fined from 10-20 million VND, and repeated violations involving less than 1,000 USD. A fine of 20-30 million USD will be given to agencies that fail to list exchange rates at transaction posts in line with the law, or list ambiguous information causing confuse for customers. The same fine will be given to individuals who trade from 10,000 USD to under 100,000 USD with each other, or … [Read more...] about Decree details fines on monetary-banking violations

Specifically, VietinBank cut its reward rate by 0.2 percent to 6.8 percent a year for 24-36 month and longer tenor. VPBank cut the rate by 0.4 percent to 7.6 percent a year for 18-36 month term. In addition, deposits of 12 month term at VPBank see it drop by 0.2 percent to 6.95-7.15 percent a year. The rate reduces 0.3 percent for nine month tenor. Previously VietCapital Bank reduced its reward rate from 7.8 to 7.6 percent a year for seven month tenor. Tenors above 24 months reduced 0.1 percent a year from the beginning of November. Similarly Eximbank cut the rate by 0.2 percent to 8.1 percent a year for 15 month term and 0.1 percent to 7.7 percenta year for 12 month tenor. SCB lowered its saving rate from 7.75 to 7.55 percent a year for 24 month tenor. In loan rates, Vietcombank slashed the rate by 0.5 percent for existing loans in Vietnamese dong for businesses in the last two months of the year. MSB announced a 2 percent cut in short term loan rate to businesses and business … [Read more...] about Commercial banks lower interest rates

Acting on behalf of the government in disbursing capital for the nation’s important projects, the Vietnam Development Bank (VDB) has been found committing serious violations. VDB was established in 2006 as a not-for-profit bank which receives subsidy from the state for interest rate differences, and management and payment-guarantee fees. Under Decision No 1515 released in 2015, the government authorized the Ministry of Finance (MOF) to manage and exercise owner’s rights and duties. VDB has huge charter capital of VND30 trillion. A report fromMOF showed that the outstanding loans the bank provides is VND100 trillion each year. It also issues tens of trillions of dong worth of bonds. At a recent workshop, Nguyen Chi Trang, deputy general director of VDB, said VDB was holding and disbursing 60 percent of ODA capital. As of August 31, 2018, VDB’s foreign outstanding loans had reached VND152.9 trillion. The government’s inspectors have found that VDB did not … [Read more...] about State may have to pay debts of Vietnam Development Bank

Vietnam will have 13,000 graduates in finance-banking who cannot secure a job in the next four years, according to a report cited last month by the Ministry of Finance. The report also showed that around 32,000 finance-banking majors will graduate in 2013, but only 20,000 of whom will be able to escape unemployment. Given this scenario, the Ministry of Education and Training (MoET) has just announced it will ban higher learning schools from adding finance-banking, business administration, and accounting majors to their current training programs, starting next year. Minister Pham Vu Luan said that his ministry will also suggest the Prime Minister impose a ban on the establishment of any new university specializing in these disciplines. Graduates in economics-related majors, including finance-banking, business administration, and accounting, are now at a surplus, according to the ministry. MoET statistics reveal that last year almost 60 percent of the country’s 416 … [Read more...] about Jobless finance-banking grads to top 13k in 4 yrs