Korean commercial banks are showing a steady growth in Vietnam (Photo: vietnambiz.vn) Hanoi (VNS/VNA) – The Republic of Korea’s banks are focusing more on Vietnam as the market emerges as a major source of earnings for them amid their slowdown from China. RoK banks are seeing their earnings in China decrease due to the prolonged trade between China and the US and the slowdown in economic growth rates. However, they are showing higher profits in the Southeast Asian region, including Vietnam, thanks to the RoK government’s New Southern Policy, the Business Korea newspaper reported. Korean commercial banks are showing a steady growth in Vietnam. Their net profits in Vietnam came to 131.80 million USD in 2018, showing a 116 percent rise (70.80 million USD) from 61 million USD in 2017, according to the data from the Financial Supervisory Service (FSS). Woori Bank Vietnam also saw its net profits surge 130 percent year-on-year to 8.17 billion won (6.83 … [Read more...] about RoK banks focus more on Vietnam for impressive growth
Huanan commercial bank
As of September 24, credit growth had expanded 8.64 per cent compared to the end of 2018, the lowest increase in recent years. — VNA/VNS Photo Viet Nam's credit growth is slowing and can fall behind the central bank’s target of 14 per cent for 2019, causing concerns that it could make it difficult for businesses to access bank loans during the remaining months of the year. According to the State Bank of Viet Nam (SBV), as of September 24, credit growth had expanded 8.64 per cent compared to the end of 2018. The rate was the lowest increase in recent years, even lower than the 9.52 per cent rise during the same period in 2018. In the SBV’s September survey on business trends at credit institutions, many credit institutions also forecast that 2019 credit growth would increase by 13.61 per cent this year, lower than the central bank’s 14 per cent target. Growth has been slow in recent months. At the end of June, credit had increased by 7.33 per cent. The figure … [Read more...] about Credit slowdown causes concern about access to bank loans
All banks in the country have to adopt the standard version of Basel II and then switch to the advanced version by 2025. — Photo baokiemtoannhanuoc.vn In 2016 the State Bank set a deadline of January 1, 2020, for 17 banks to meet Basel II norms under a national banking sector development strategy. Also, by 2025 all banks in the country have to adopt the standard version of Basel II and then switch to the advanced version. Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. It comprises minimum capital requirements, supervisory review and market discipline to enhance competition and transparency in the banking system and make banks more resistant to market changes. Basel II requires banks to have a capital adequacy ratio (CAR) of at least 8 per cent. However, the SBV has allowed 10 banks to adopt Basel II standards earlier than the 2020 deadline. They are Joint Stock … [Read more...] about Basel II deadline rapidly approaching, are banks on course to meet norms?
Recently-enacted Resolution 52 outlines policies to help reinvigorate the country’s relationship with Industry 4.0 tech Privately-held LienVietPostBank and its South Korean partner last week joined hands to bring Vi Viet, the bank’s flagship digital bank model, to South Korea for a test run of QR code payment deployment. Based on the bank’s study, the move does not impinge on current relevant regulations on risk management, loan limits, or international settlements. However, in a recent talk with VIR, Nguyen Dinh Thang, chairman of LienVietPostBank, raised his concerns over the potential compliance risks in the case of wider service deployment, as current regulations on digital banking, e-wallets and Electronic Know Your Customer (eKYC) remain unclear. The eKYC process is one in which approved entities require a digital ID system to authenticate or verify their customers’ identities and, in some cases, retrieve basic information about them. “We expect … [Read more...] about Compliance risk blocking banks from going digital
Delegates at the ceremony to mark the 10th founding anniversary of BIDC (Photo: VNA) Phnom Penh (VNA) – Cambodian Deputy Minister Men Sam An has lauded contributions of the Bank for Investment and Development of Cambodia (BIDC), a subsidiary the Bank for Investment and Development of Vietnam (BIDV), in boosting Cambodia’s economic growth. The BIDC has played a leading role among Vietnamese businesses operating in Cambodia, with strong performance in connecting economic-trade-investment activities of the two countries, she said at a ceremony to mark the 10th founding anniversary of the BIDC in Phnom Penh on September 19. Formerly known as the Prosperity and Investment Bank, the BIDC became operational in September 2009. Over the past 10 years, the bank has become one of the biggest commercial banks in Cambodia with total assets exceeding 750 million USD and outstanding balance of more than 600 million USD. Governor of the National Bank of Cambodia Chea Chanto said the … [Read more...] about Vietnamese-invested bank’s contributions to Cambodia’s economic growth hailed