As Resolution No.42/2017/QH14 on the pilot settlement of credit institutions’ bad debts is enacted, it is hoped that bottlenecks for mergers and acquisitions (M&A) activities in the banking industry will be removed and more M&A deals will be implemented soon. Reforms help M&A landscape to shine Serving up an M&A feast Abundant attractive deals make huge contribution to M&A market The negotiations on selling Ocean Bank to foreign investors are hoped to be finished soon Plentiful offers, little success After the failure of Singaporean United Overseas Bank (UOB) to acquire Global Petro Commercial Joint Stock Bank (GPBank), GPBank is now in negotiations with … [Read more...] about Bad debts dampen M&A boom in banking industry
Derivatives in banking
HA NOI (Biz Hub)— The Vietnamese gold market spent the last days of the Year of the Snake, 2013, with less fuss than usual, and entered the Year of the Horse, 2014, silently too.Will this year be energetic, cheerful and nice, just like a horse's nature, towards local gold and gold holders? Would gold stay in demand?The Year of the Snake was one of the worst years of the Vietnamese gold market, which plunged 25 per cent in value against 2012, and ended the 12-year bull run of the yellow metal. This tarnished the sheen of the traditional asset of Vietnamese people, but the attractiveness of gold remains controversial.Nguyen Tri Hieu, a gold expert told Investment newspaper: "In the mid to long term, local gold will follow the downtrend of world gold. Many investors have rejected this metal, which I see as a wise move because there are no signs of a recovery happening this year."Huynh Trung Khanh, senior consultant of the World Gold Council in Viet Nam, argued that world gold would … [Read more...] about Will gold rebound in Year of the Horse?
HA NOI (VNS)— The State Securities Commission has completed a decree on derivatives transactions which will be submitted to the Government for approval this year. According to director of the Market Development Department under the commission Nguyen Son, the domestic stock market was set up thirteen years ago, but a derivatives market had yet to be firmly established. Currently, only stocks, bonds and fund certificates are commonly traded. Derivatives transactions became essential in Viet Nam when unpredictable changes in the prices of commodities, interest rates, exchange rates and stocks posed risks to investors. Several commercial banks provide currency derivatives, but not enough to meet market demand and prevent risks from exchange rate and interest rate fluctuations. Regarding the commodities market and futures trading, common products including rice, coffee, rubber and steel have been added to foreign trading floors such as the Commodities Exchange (Comex) and the London … [Read more...] about Derivatives decree to manage market
by Thien Ly The Ha Noi-Sai Gon Commercial Joint Stock Bank (SHB) opened its fully-owned SHB Bank Limited in Laos in mid-January by upgrading the transaction office it had set up in 2012. The bank has a charter capital of $50 million and a branch in Champasak besides the main office in Vientiane. SHB is the third Vietnamese bank to enter Laos after Vietinbank and Sacombank. SHB Bank Limited has ambitious plans over the next five years: 15 transaction points, branches and offices; over 300 highly skilled staff and gross profit of $9.15 million. SHB is just one of five banks to have branches overseas, with Vietinbank, MB and HDBank being the others. Many Vietnamese banks have been scrambling to open branches in other countries to improve their competitiveness and help Vietnamese companies do business overseas, a growing trend in recent years. They began overseas investments in 2008 in various forms including joint ventures. The Lao Viet Nam Joint Venture Bank (Lao-VietBank) was … [Read more...] about Banks willing to take risk, move abroad
A customer makes a transaction at HDBank in Ha Noi. Derivatives drew participation of large domestic banks. However, there were no derivatives in the bond market. — VNA/VNS Photo Tran Viet HA NOI (VNS)— There are virtually no derivatives in the Vietnamese bond market, says Vietnam Bond Market Association general secretary Do Ngoc Quynh. Derivatives include four main instruments: forward contracts, swap agreements, futures contracts and option contracts. Quynh told a conference in Ha Noi that while derivatives were connected with the development of the bond market, there were few derivative instruments in Viet Nam. Quynh said the scale of the local bond market was relatively small and liquidity focused on bonds with maturities of less than three years. "At the same time, because derivatives are not applied, investors have no hedging products when the market is volatile." In the Vietnamese market, investors often bought debt instruments with floating rates and the … [Read more...] about Derivatives essential for ensuring progress in volatile bond markets