State bank of vietnam

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

As of September 24, the M2 money supply had increased 8.58 percent while outstanding loans provided for the economy had grown 8.64 percent from the end of 2018 (Photo: VNA) Hanoi (VNA) – Credit has been provided for production and business activities and the priority fields while loans for high-risk areas have been further tightened so far this year, the State Bank of Vietnam (SBV) reported.  At a press conference in Hanoi on October 1, SBV Deputy Governor Dao Minh Tu said the central bank has kept steering the monetary policy in a proactive, flexible and prudent manner, and coordinating it with the fiscal policy and other macro-economic policies to control inflation, support economic growth, and stabilise the monetary and forex markets. As of September 24, the M2 money supply had increased 8.58 percent compared to the end of 2018. The liquidity of the credit organisation system has been ensured. For 2019, the SBV targets that the M2 money supply and credit will grow … [Read more...] about Capital funneled into priority fields: central bank

At the signing ceremony (Photo: VNA)   Hanoi (VNA) – The World Bank (WB) and the State Bank of Vietnam (SBV) on October 1 inked a grant agreement worth 2.2 million USD to implement a project aimed at strengthening the soundness and resilience of Vietnam’s banking sector. The grant, sponsored by the Swiss Government, is designed to improve SBV’s capacity in removing bottlenecks in the banking system’s structure. Under the agreement, the WB will provide technical assistance to launch reforms set in the Restructuring Plan of the Financial System 2016-2020 and the Development Strategy of Vietnam Banking Sector to 2025. At the ceremony, WB Country Director for Vietnam Ousmane Dione said a sound banking system is of great significance to the sustainable economic development of a country. By sharing experience in the development of the system, the WB could help the SBV to successfully launch its structural reforms, he added. The WB will team up with the SBV … [Read more...] about World Bank project to strengthen banking sector’s soundness

Hanoi (VNS/VNA) - The banking sector is waiting for the State Bank of Vietnam to allow the use of electronic know your customer/client (e-KYC). TPBank was chosen to trial it in January last year. According to LegalDesk Website, KYC or Know Your Customer is a process an institution employs for customer identification. The Securities Exchange Control board of India (SEBI) laid down that any institute that deals with financial transactions or functions as financial intermediaries needs to verify their customer’s identity under the Prevention of Money Laundering Act, 2002. With banks and mutual funds instituting the KYC process for all its customers, it did help with preventing money fraud and identifying suspicious transaction activity of an account holder. KYC is a one-time process that is mandatory for all people of Indian nationality. eKYC is the process of an institution getting acquainted with their customer, though electronically. The main objective of … [Read more...] about Client ID holds key to making digital banking safe

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?