Cash flow has returned to the banking system after Tet (Photo: VNA) Hanoi (VNS/VNA) - Liquidity of the banking system has been plentiful again after the Lunar New Year (Tet), helping the central bank net withdraw more than 51.55 trillion VND (2.2 billion USD) in the past week. According to a report from the Saigon Securities Inc (SSI), the good liquidity, which was thanks to the return of cash flow to the banking system after Tet, has helped interest rates of loans in the inter-bank market decrease at all terms to 4.52 percent per year for overnight loans and 4.64 percent for one-week loans. "The peak period when capital demand was rising sharply a few weeks before Tet has passed, and interest rates in the inter-bank market will likely remain stable at 4-4.75 percent per year," SSI forecast. According to the SSI report, deposit interest rates listed at commercial banks are also relatively stable, with a slight rise of 0.1-0.2 percentage points applied at some banks as promotional … [Read more...] about Bank liquidity abundant after Tet
Banks increase mortgage rates
Doan Mau Diep, Deputy Minister of Labour, Invalids and Social Affairs, speaks to the Tiền Phong (Vanguard) newspaper about how Vietnam will revise the retirement age for workers or State employees. Retirement age increase necessary for Vietnam: ILO specialist Retirement age adjustment needs to be flexible: expert Doan Mau Diep. — Photo tienphong.vn How do you respond to a proposal that Vietnam would raise the retirement age for its workers while many people in the working age still can’t find jobs? It is a real fact that in any labour market, job positions are always bigger than the actual number of working people. Yet, in all countries, many people are still unemployed. Japan is a good example. According to a national survey, there is only one candidate for four working positions while the unemployment rate in Japan currently stands at 2.4 per cent. In the real labour market, the mismatch between supply and demand happens in all countries, and … [Read more...] about Why we have to increase the retirement age?
Illustrative photo (Source: VNA) Hanoi (VNS/VNA) – The State Bank of Vietnam (SBV) is planning to change its policy on reserve requirement ratios for credit institutions and foreign banks’ branches for the first time since 2011. The plan has put forward for comment. The SBV will reduce the reserve requirement ratio by half for credit institutions that take part in the central bank’s plans to support the restructuring of ailing credit institutions. The reserve ratio is the portion of reservable liabilities that depository institutions must hold onto, rather than lend out or invest. Currently, the SBV’s reserve requirement ratio applicable to demand and below 12-month term deposits is 3 percent of the total deposits, while the rate for 12-month-plus term deposits is 1 percent. The ratios for foreign currency deposits are 8 percent and 6 percent, respectively. The above rates have remained unchanged since 2011. According to the central bank, the draft policy … [Read more...] about Central bank to change reserve requirement policy
The shareholders’ meetings of HDBank and PGBank were both organized on April 21. All of PGBank’s shareholders agreed on a plan to merge PGBank and HDBank, while 94.3% of shareholders agreed to do so for HDBank. The merger of two banks will start soon, with share conversion in July and the merger wrapped up in August. The schedule was a surprise to the finance community. Just days before, on March 29, when asked about the bank’s M&A plan, CEO of MBBank Luu Trung Thai said MBBank was still considering banks for the plan, including PGBank. Now, as PGBank has decided to merge with HDBank, MBBank will have to look for another partner. At the 2018 shareholders’ meeting, LienViet Post Bank stated it was considering raising charter capital, restructuring shareholders, completing an M&A, and restructuring credit institutions as requested by the State Bank. Duong Cong Minh, former chair of LienViet Post Bank, is now chair of Sacombank. Nguyen Van Huynh, who … [Read more...] about Commercial banks discuss M&As – again
Between 70 and 80 percent of the unemployed are junior college (3-year training) or university (4-5 year training) graduates. The number of workers finishing junior colleges and universities accounts for the highest proportion of trained workers. However, there are only 30 workers with junior college or higher education degrees per 1,000 people, which is lower than 52 per 1,000 in South Korea and 70 per 1,000 in Japan. The World Bank found that Vietnam’s state’s investment in each Vietnamese student was very low compared with Malaysia, Thailand, Singapore and Indonesia. In 2013, Vietnam spent $645 per student, while it was $12,013 in Singapore, or 20 times higher than Vietnam. Le Ha Should there be common standards for university graduates? Higher education establishments all have announced their standards for graduates. Overseas university graduates reluctant to return to Vietnam Complicated procedures, low incomes and bad working environments explain why … [Read more...] about In Vietnam, unemployment rate among higher education graduates is higher than others