Since early this year, many banks have made deep deposit rate cuts, with the rate for tenures shorter than six months reduced by 0.5 percentage point and that for longer tenures slashed by 1.5 to 2.0 points. The lending rate, however, remains high as its reduction has been narrower than that of
HCMC – Vietnam’s central bank net withdrew nearly VND39 trillion from the market and slashed interbank interest rates further as the banking system saw surplus liquidity due to slow credit growth. The State Bank of Vietnam (SBV) sold seven-day and 28-day government bonds worth a combined VND20
HCMC – Cash flow shortages have forced many large companies to sell their assets at half their actual value to stay afloat in tough economic times, heard a meeting between the Ministry of Planning and Investment and the National Assembly Standing Committee on May 9. Although the money market
One of the greatest concerns at the moment is the “time bomb” called corporate bonds, which may also affect the credit quality of the banking system. With a considerable volume of corporate bonds falling due in the rest of this year, what should banks do if issuing organizations fail to pay
A solution to economic growth that the Government has doubled down on is to spur public investment, with major infrastructure projects given a focus. Such efforts have yet to pay off. What is the problem? Fiscal expansion In March 2023, the State Bank of Vietnam (SBV), the central bank, twice
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,
The corporate bond market has changed for the better, with a huge volume of bonds issued in March. Whether the market recovery trajectory stays the course is uncertain. Back on track? Data collected by the Vietnam Bond Market Association from the Hanoi Stock Exchange and the State Securities
Within only two weeks, the State Bank of Vietnam (SBV) has twice cut key interest rates. This move has stirred up concerns among certain observers that the SBV may have made a premature move compared to other central banks’ actions. However, there is a good reason behind the SBV’s move to support
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,
HCMC – The State Bank of Vietnam, the central bank, announced five separate decisions today, March 31, to further lower some key interest rates, with effect from April 3. This is the second round of rate cuts in March. The SBV said the forthcoming rate reductions were part of the efforts of the
To secure enough capital for business operations, a wooden product exporter to the U.S. and the EU had to agree to secure a loan of VND10 billion with an annual interest rate of over 9%, instead of 5-6% as in previous years, said its director. The firm applied for the loan last year, but only […]
The fact that credit growth has been sluggish in the year to date means that it is not yet necessary for banks to allocate high targets in the beginning of the year. In addition, the potential risks to the economy, especially for inflation, give banks more reasons to retain their control over