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Vietnam to form large bank group: report

Vietnam’s central bank plans to form a group of 12 large commercial banks which have a combined market share of 85 percent in an attempt to restore order in the banking system, news website VnEconomy reported.

OceanBank offers preferential interest rate

The program is designed for enterprises in sectors of agriculture production, export and other business sectors. Accordingly, the bank’s the most preferential lending interest rate of 16% per year will be offered for sectors of agriculture and export and the minimum lending interest rate of 17% per year is for other business and production fields.

Overnight interest rate falls up to 2.5pct, net withdrawal at over 3tr dong on OMO

According to the data compiled by Reuters and calculated by the local online newspaper NDHMoney, in five sessions from September 12 to 16, the central bank pumped 22.981 trillion dong on OMO at the interest rate of 14% per annum (p.a.) for 7-day term and withdrew 26 trillion dong.

Disbursement for loans at interest rate of 17-19pct/yr remains low

Truong Van Phuoc, general director of Vietnam Export and Import Commercial Joint Stock Bank (Eximbank-EIB) said that so far his bank has disbursed some 500-600 billion dong with low lending interest rate. However, those who want to borrow capital must have good performance and commit to sell foreign currency for the bank.

Rise in bad bank debt exposes economy

In a workshop with the World Bank in June, the council’s vice chairman, Le Xuan Nghia, said that bad debts were a major concern because a large part of banks’ capital had been lent to inefficient State-run enterprises.

Tighter spending helps curb inflation

The report was launched by the Asian Development Bank (ADB) in Ha Noi yesterday. Bank country director for Viet Nam Tomoyuki Kimura said being faced with double-digit inflation, dwindling foreign reserves and a weakening currency, the Government’s Resolution 11, adopted in February this year, was a comprehensive policy package of fiscal and monetary tightening measures to curb inflation. Progress has been made but year-on-year inflation remained at more than 20 per cent, Kimura.

Bad debt of Vietnam’s whole economy at 7-8pct: Bidv’s chairman

According to the representative of state-run enterprises, the bad debts of some banks are still higher than the average level of the entire banking system, of which, Vietnam Bank for Agriculture and Rural Development (Agribank)’s bad debt is 6.67% and Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB)’s bad debt is 3.47%. Notably, Agribank still posted low capital adequacy ratio (CAR).

US dollar price in black market exceeds 21000 dong

Meanwhile, the State Bank of Vietnam (SBV) on September 15 still remained unchanged the interbank average forex rate at 20,628 dong/US dollar for 19 consecutive days.

HSBC, Barclays to advise Vietinbank’s planned overseas dollar bond sale

“VietinBank has made a good choice of advisers,” said Alan Pham, chief economist at VinaCapital Investment Management Ltd. HSBC has a depth of expertise and wide distribution network globally that will help get the Hanoi-based bank a “good rate,” he said.

VND interest rates down, but US dollar loans remain attractive

Vu Dinh Anh, a well-known economist, said that businessmen have consulted with him about if they should borrow in dollars or Vietnam dong since the dong interest rates have been decreasing. “If you can earn dollars to pay bank debts, I replied, you should borrow in dollars, because the dollar loan interest rates are still lower than the dong interest rates, even though the dong interest rates have been eased (7-8 percent per annum vs 17-19 percent per annum). However, if you cannot earn dollars to pay debts, you should be cautious with the exchange rate fluctuations,” Anh said.

Calm heads prevail as the forex market to remain cool

Last week, the central bank decided to increase the reserve requirement ratio by 1 per cent to 8 per cent for foreign currency deposits less than 12 months and to 6 per cent for foreign currency deposits over 12 months.

New law hopes to regulate direct bank wage transfers

Deputy director Hoang Minh Hao said payments via bank transfer were mentioned in the draft of the Labour Code, which has been proposed to the government for comments, as an alternative to cash payments.

Time not right to declare victory in fighting inflation

The government and the State Bank of Vietnam (SBV) are right to focus policy on reducing inflation and achieving stability for the value of dong. High interest rates have been a significant part of enforcing those policy aims. While the pace at which inflation is growing has slowed down, it would be viewed badly by the market if “victory” was declared too early and interest rates lowered before it is clear that inflation is on a downward trend. Once it is on a downtrend, there may be scope to reduce interest rates gradually.

Vietnam borrows $75m from ADB to upgrade traffic system

Previously, under the authorization of the Prime Minister, on February 23, 2011 in Hanoi, the State Bank of Vietnam (SBV)’s governor, Nguyen Van Giau, signed the loan agreement on the aforementioned project with representatives of Asian Development Bank (ADB) in Vietnam.

Central bank target seems out of reach for banks

Property developers are unable to sell their products to repay bank loans. It is not difficult to collect consumer loans since they are mostly given to salaried people and the amounts involved are not large.


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