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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.

Vietinbank may offer 6 percent coupon on $500 million bond

The lender is “determined to sell the bonds within this year,” said Chairman Pham Huy Hung.

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.

Vietcombank to lower lending rate for exporters

Accordingly, the preferential lending interest rate of 17-19% per year will be offered to customers in sectors of production, export, agriculture and rural area. Particularly, customers subject to aforementioned borrowers in HCM City will enjoy the preferential lending interest rate of 16.5% per year. Exporters who use payment services via Vietcombank will be given the most preferential lending interest rate of only 16% per year. In addition, Vietcombank also set aside of four trillion dong to launch lending program for enterprises in the sectors of export of seafood and processing and export of wooden products whereby the preferential lending interest rate for this program will be only 16% per year.

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.

Large banks post robust profit

Currently, most of large banks in turn published their business results in Q1 with quite surprising figures amidst many hardships of the economy, highly surging inflation, tension on interest rate and forex rate, narrowed credit growth and tightened gold trading.

VietinBank, UniCredit sign cooperation agreement

The agreement will offer opportunities for a tighter partnership, better exchange of information, experience sharing, and access to each other’s customer information. Such opportunities will allow both sides to expand their operations, enhance their financial strength, and undergo further development in the long term.

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.

State Bank hesitant in purchasing dollars

Only on April 29, the State Bank of Vietnam increased the dollar purchase price by 214 dong per dollar, in comparison with the price of April 28. Prior to that, the central bank kept the purchase prices at low levels for a long time. The statistics show big gaps between the market prices quoted by Vietcombank and the exchange rates announced by the State Bank’s Exchange, which have existed since early April.

Lending rate for production sector climbs to 20pct/yr

The lending rate for non-production sector also increased to 20-23 percent per year and it was 14.5-17 percent per year for agriculture and rural areas and export sector. The US dollar lending rate was commonly at 6-7.5 percent per annum for short terms and it was 7-8.5 percent per annum for medium and long terms.

Banks to stop gold deposits to curtail risks

According to the SBV, gold deposit and lending activities in the past resulted in gold price unpredictability and fluctuations, leading to increased gold speculation and illegal imports, which negatively impacted the monetary and foreign exchange market and exchange rate. Moreover, credit organisations’ gold lending activities mainly focused on the non-production area, which is excluded from the State’s capital priorities.

PM approves bank's equitisation plan

MHB was established as a state-owned bank in 1997. Since then, its asset value has reached nearly VND51.4 trillion ($2.5 billion), 171 times its initial worth. The move follows the earliers equitisation of Vietcombank (VCB) and Vietinbank (CTG) – which are now listed on the HCM Stock Exchange.

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