Navigating monetary policy amid stronger economic headwinds
HCMC – The recent collapse of the First Republic Bank in the U.S. has rattled the financial market. Most of the lender’s assets are being acquired by JPMorgan Chase & Co, which include US$173 billion in loans, US$30 billion in securities and US$92 billion in deposits, international media
SBV orders banks to review corporate bond trade
HCMC – The State Bank of Vietnam (SBV), the nation’s central bank, has told banks to make sure that their clients can fully understand the difference between bank deposits and investments in corporate bonds and fund certificates. The central bank has written to commercial banks telling them to
Large commercial banks agree to further cut interest rates
HCMC – Four state-owned commercial banks have agreed to further reduce interest rates following their meetings with the Government and the State Bank of Vietnam (SBV). Prime Minister Pham Minh Chinh held a meeting with the SBV and state-owned commercial banks on credit growth yesterday in Hanoi,
Banks allowed to reschedule debt
HCMC – Banks can now reschedule debt owed by corporate clients, according to a new circular issued by the State Bank of Vietnam (SBV). Circular 02, which is in force until June 30, 2024, permits banks to extend debt repayment and keep debt classfications unchanged for debtors who are struggling to
Central bank eases control over corporate bond buybacks
HCMC – The State Bank of Vietnam (SBV), the central bank, is providing much-needed support for the illiquid corporate bond market by making it easier for local banks and branches of foreign banks to buy back corporate bonds. On April 23, the SBV issued Circular 03/2023, suspending Clause 11,
Draft law allows interest-free lending to institutions facing bank runs
HCMC – The State Bank of Vietnam, or SBV, has sent a draft of the amended Law on Credit Institutions to the National Assembly, in which local banks could ask for interest-free loans if they face a bank run. The SBV, the central bank, said that Vietnam should draw lessons from the bank runs that […]
Bad debt looms large for real estate
HCMC – Non-performing corporate bonds are looming large due to a high financial leverage ratio and negative cash flow of unlisted, cash-strapped real estate companies. A recent market report by the Vietnam Investors Service and Credit Rating Agency JSC (VIS Rating) indicated gloomy prospects for
G-bond coupon rates for all tenors slide further in March
HCMC – Given the downtrend in January and February, the coupon rates of government bonds (G-bonds) in March continued to drop by 40 to 76 basic points in all tenors against the last G-bond auction held in early March. At the auction session in late March, the G-bond coupon rates for the five-year,
Interbank interest rates increase four-fold
HCMC – Overnight interbank interest rates on April 6 surged from 0.9% per year to nearly 4.5% per year, leading many experts to predict a further interest rate cut by the State Bank of Vietnam. After a decrease at the end of March, the interbank interest rate showed signs of increasing immediately
Over VND26 trillion in corporate bonds issued in March
HCMC – The corporate bond market showed signs of recovery in March, with 11 rounds of bond issues worth a total of VND26,425 billion launched, according to the Vietnam Bond Market Association (VBMA). This is a significant increase compared to previous months. January saw only one batch of
Agribank offers VND30-trillion credit line for homebuyers, developers
HCMC – The Vietnam Bank for Agriculture and Rural Development, or Agribank, has rolled out a VND30-trillion credit line for social housing investors and homebuyers, applicable from now until June 30 of this year. The interest rate is 8.7% per year for investors and 8.2% per year for homebuyers,
Saigon Times, central bank to host banking forum next month
HCMC – The Saigon Times Group, in collaboration with the State Bank of Vietnam (SBV), will hold a forum titled “Monetary policy in turbulent times”. It is planned to take place at the International Convention Centre in Hanoi on May 10. The event is being held amid economic uncertainties continuing