The sustainable development of Vietnam’s banking sector in 2018 was the theme of a conference held by the Saigon Economic Times on May 8. The conference on the Vietnamese banking sector's sustainable development Deputy Governor of the State Bank of Vietnam (SBV), Nguyen Kim Anh, stated that the central bank’s monetary policy in recent years has helped lay a solid foundation for the healthy development of the banking system and macroeconomic stability. She added that Vietnam’s position has been enhanced, as seen in credit rating upgrades issued over the years by international ratings agencies. According to head of the SBV’s monetary policy department Pham Thanh Ha, inflation has been brought down from two-digit figures in 2008 to less than 10% and has remained relatively stable at low levels since 2012. Last year, Vietnam’s inflation averaged at 3.53 percent, lower than the 4 pct rate set by the National Assembly. Interest rates have also come … [Read more...] about Sustainability of Vietnam’s banking sector comes under spotlight
State bank of vietnam
Vietnam State bank orders stop ATM fee hike
The three banks announced the increase of service fees for ATM cash withdrawals from VND1,100 to VND1,560 even at ATMs run by these same banks. After hearing the announcement of the three banks, the State bank of Vietnam liaised with the Vietnam Bank Association to cease the plan in order to calm down the public. Additionally, the State Bank of Vietnam ordered a transparency in collecting ATM fee to let customers understand more about the regulation. The Vietnam Bank Association also exchanged with representatives from the three banks about balancing between their benefits with customers’ rights and interest who are using financial services and to create harmony between service providers and service users. The three banks agreed to cancel their plan. As per the Vietnam Bank Association’s statistics, 38.73 million people are using ATM cards of the three credit institutions in circulation, accounting for over 50 percent of Vietnam’s total. Fee hike of the three banks … [Read more...] about Vietnam State bank orders stop ATM fee hike
Vietnam’s state bank tries to reassure clients in wake of multi-million fraud cases
By Anh Minh  April 3, 2018 | 11:06 am GMT+7 Bank tellers receive customers at an Eximbank office, as shown in a file photo by VnExpress. One client lost nearly $11 mln after a renegade bank employee used forged documents and fled overseas. Vietnamese banks and government authorities are trying their best to protect the legal rights of clients in the wake of multiple fraud cases that involved clients losing millions of dollars, an official from the State Bank of Vietnam (SBV) said at a press conference on Monday. Vice governor of the central bank, Nguyen Thi Hong, said banks have gone to great lengths to protect the rights of clients, and that the SBV has issued tight regulations to manage deposits and force credit unions to comply. “These documents [on regulations] clearly outline the procedures for managing deposits and explicitly state that credit unions are responsible for transparency. Violations will not be tolerated,” Hong said. She … [Read more...] about Vietnam’s state bank tries to reassure clients in wake of multi-million fraud cases
Banks expected to record high profits
After the first two months, Tien Phong Commercial Joint Stock Bank’s (TPBank) profits after provision for risky loans nearly doubled year-on-year to VND 275.8 billion (USD 12.14 million). The bank posted outstanding loans at VND 76.78 trillion (USD 3.38 billion) and a mobilized capital of nearly 106.2 trillion VND (4.67 billion USD). Its non-performing loan ratio accounted for 0.97 percent of its total outstanding loans. The general director of an HCM City-based bank, who declined to be named, said the bank’s pre-provision profit in the first three months of the year is estimated to be roughly VND 1 trillion (USD 44 million). However, he said, in having to provision for the special bonds of the unsettled bad debts sold to Vietnam Asset Management Company (VAMC), the bank’s remaining profit in the first quarter is likely to be several hundreds of VND. With a favorable start, his bank expects a positive completion of the 2018 target. … [Read more...] about Banks expected to record high profits
Vietnam’s first quarter credit growth at 2.23 percent: GSO
Commercial bank deposits also went up by 2.20 percent; however it is 2.43 percent lower compared to the same period last year. Vietnam’s credit growth was 2.23 percent in first quarter while it was 2.81 percent in last year’s first quarter. GSO’s report said that deposit interest rates were also stable, at 6.5 - 7.3 per cent for deposits in Vietnamese đong over a 12-month term. Lending interest rates for prioritized sectors stood at 6 - 6.5 per cent over 12-month term while it was 6.7 - 9 percent in short -term loans and 9.3 - 11 percent in long-term loans for other sectors. For businesses with transparency in finance report, lending interest rate was 4 - 5 percent over 12 months as short-term loans. The office of State bank of Vietnam in the HCMC said that credit growth of institutions in the city in the year’s first quarter was estimated 3 percent higher than the growth in the end of 2017 and much higher than the country’s general growth. The … [Read more...] about Vietnam’s first quarter credit growth at 2.23 percent: GSO