The Hanoitimes - The State Bank of Vietnam (SBV) officially announced the rates of credit growth allocated for commercial banks this year. This was released at a press conference chaired by Vice Governor of SBV, Nguyen Dong Tien, who said that the bank was focusing on implementing resolution 01 of the cabinet in developing the socio-economic plan in 2012. Tien said that they will take steps to assure clearing of debts between inter-banks system so as to mobilise fund for priority targets set for 2012.However, he added, that in 2012 the banking system will undergo restructuring as its main task. Another task is to intensify the control of credit institutions and bank groups, especially small banks that must strictly comply with regulations. According to an instruction issued by the Governor of the State Bank of Vietnam, Nguyen Van Binh on Feb. 13, banks belonging to Group 4 (weak banks) will not be allocated any credit growth this year. The remaining three groups, including … [Read more...] about State Bank of Vietnam announces rates of credit growth
State bank of vietnam
Six banks escape State Bank of Vietnam sanctions
Six Ho Chi Minh City-based banks have narrowly escaped being sanctioned by the State Bank of Vietnam after managing to cut their outstanding loans to non-manufacturing sectors to 22 per cent by June 30, Ho Huu Hanh, director of the central bank's city branch, said. The media cited a source from Mirea Asset Securities Co earlier this month as stating that the six banks that could fail to comply with this requirement were VietABank, Saigon-Hanoi Bank, Western Bank, VietBank, Saigon Commercial Bank, and TinNghiaBank. Failure to cut the loan figure to 22 per cent by June 30 would have required them to double their reserves with the central bank. They would have had to set aside around VND5.2 trillion ($252.9 million) for this besides being prohibited from expanding operations until the end of 2012, SBV governor Nguyen Van Giau said. Source Tuoitrenews … [Read more...] about Six banks escape State Bank of Vietnam sanctions
State Bank of Vietnam pledges assistance to banks in difficulties
SBV Vice Governor Tran Minh Tuan made the affirmation at a recent meeting of a SBV group on charge of supervising the monetary market. According to the group, commercial joint stock banks have so far this year posted good growth rates in terms of services, technological application, financial and competitive capability, and provision of safe operation. The Government's solutions package to control inflation, stabilise macro-economy and ensure social welfare, particularly including measures to tighten monetary market of the SBV, have yielded initial positive results. By June, the total means of payment of the banking system has increased 4.48 percent, a remarkable drop compared with 20.5 percent recorded in the same period last year. A declining treand has also shown in credit growth rate, from 1.63 percent in January to 1.22 percent in June. Expert also said the banking system is capable of meeting importers' demand for foreign currencies and the VND/USD exchange rate will be … [Read more...] about State Bank of Vietnam pledges assistance to banks in difficulties
State Bank of Vietnam set to plug lending loopholes that worsen bad debt situation
Banks have been exploiting loopholes in regulations to avoid making adequate provisions for bad debts, but analysts expect a new circular from the central bank to plug them through stricter regulations for loan classification. Banks are prohibited from paying dividends until they make adequate provisions for bad debts, which were estimated by the State Bank of Vietnam at 8.82 percent of total loans as of the end of last September. But banks have been increasing lending through credit cards, thus becoming exempt from making provisions for possible bad debts. Thanh Nien discovered that many banks are lending to credit card holders two or three times their income, while a person is issued even four or five cards at the same time. Such loans are very risky since they are not secured by collateral. Economist Le Tham Duong said banks have been dishonest about bad debts and making provisions, which could worsen an already bad situation. The new regulation will definitely help … [Read more...] about State Bank of Vietnam set to plug lending loopholes that worsen bad debt situation
State Bank of Vietnam hikes dollar exchange rate
The State Bank of Vietnam has announced a hike in the interbank dollar exchange rate for a second consecutive day today. A VND10 increase saw the dong weaken to VND20,648, enabling banks to trade the greenback in a band between VND20,854 and VND20,442. On Wednesday the central bank had hiked the rate by VND10 for the first time in 35 sessions. Following the second increase, banks sold the greenback at VND20,844. On the Ho Chi Minh City black market, the bid and ask prices were quoted VND21,550 and VND21,700. In Hanoi, they were VND21,560 and VND21,620. The dollar has strengthened by some VND400 since September end when it crossed the VND21,200 mark. Domestic gold prices have also fluctuated along with the soaring dollar. Gold retreated to VND44.35 million a tael at the close yesterday after rising to VND44.70 million in the morning. Vietnamese remain VND2.35 million higher than global rates, which rebounded to US$1,609.1 an ounce at yesterday’s … [Read more...] about State Bank of Vietnam hikes dollar exchange rate