Dr. Nguyen Thi Mui, a member of the National Advisory Council on Financial and Monetary Policies Recently, central banks worldwide have rushed to raise benchmark interest rates to cool rampant inflation, including the US Federal Reserves (Fed) and European Central Bank (ECB), while many others have also signaled they will raise rates this year. Vietnam News Agency spoke to Associate Professor Dr. Nguyen Thi Mui, a member of the National Advisory Council on Financial and Monetary Policies (NACFMP) about how their moves will affect the global economy, including Viet Nam. Many experts believe the use of interest rate tools by the Fed and ECB and other regulators may slow down their economic recovery and even push them into recession. What is your opinion on this matter? I think this statement is correct. Using the interest rate tool can gradually lower inflation, but to a certain extent, this tool also narrows investment. This means that fewer jobs will be created, businesses … [Read more...] about Monetary policy needs to ensure caution and flexibility: NACFMP
Capital inflows on credit
Banks should tighten assessment controls of their corporate bonds investments – experts
Piles of VND100.000 bank notes. — EastAsia forum/VNA Photo Banks must tighten their assessment controls of corporate bond investments to avoid excessive risk and the misuse of funds raised by firms, experts said. In early April, the Banking Supervision Agency, under the State Bank of Vietnam (SBV) conducted an inspection of corporate bond investment activities at seven banks, while the Ministry of Finance inspected one bank. According to the SBV, by the end of 2021, there are 41 credit institutions holding VND274 trillion (US$11.7 billion) of corporate bonds, of which more than 75 per cent of them are held by ten major banks - Techcombank, MBBank, VPBank, TPBank, BIDV, Vietcombank, VietinBank, HDBank, ABBank and SeABank. At some banks, the value of corporate bonds exceeds 10 per cent of total assets. Although the inspection results were not published, a SBV senior leader said in an interview with Vietnam Investment Review that a number of credit institutions failed to … [Read more...] about Banks should tighten assessment controls of their corporate bonds investments – experts
Banks shouls tighten assessment controls of their corporate bonds investments – experts
Piles of VND100.000 bank notes. — EastAsia forum/VNA Photo Banks must tighten their assessment controls of corporate bond investments to avoid excessive risk and the misuse of funds raised by firms, experts said. In early April, the Banking Supervision Agency, under the State Bank of Vietnam (SBV) conducted an inspection of corporate bond investment activities at seven banks, while the Ministry of Finance inspected one bank. According to the SBV, by the end of 2021, there are 41 credit institutions holding VND274 trillion (US$11.7 billion) of corporate bonds, of which more than 75 per cent of them are held by ten major banks - Techcombank, MBBank, VPBank, TPBank, BIDV, Vietcombank, VietinBank, HDBank, ABBank and SeABank. At some banks, the value of corporate bonds exceeds 10 per cent of total assets. Although the inspection results were not published, a SBV senior leader said in an interview with Vietnam Investment Review that a number of credit institutions failed to … [Read more...] about Banks shouls tighten assessment controls of their corporate bonds investments – experts
