Central bank cuts interest rates further in easing cycle
HCMC – The State Bank of Vietnam (SBV) has announced two separate decisions further lowering key interest rates, with effect from Thursday, May 25. This is the third rate reduction since March in the central bank’s monetary easing cycle aimed at boosting slackening economic activity and
Navigating monetary policy amid economic turmoil
Exercising prudence in navigating monetary policy has become more critical than ever as recession risks, escalating inflation, slow global trade growth and a banking crisis in the U.S. are biting into the global economy. Inflation risk looms large The macroeconomic outlook in 2022 and early 2023
Central bank drains VND39 trillion from market this week
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
Draft law seeks SBV’s early intervention in bank runs
HCMC – An early intervention by the State Bank of Vietnam, or SBV, should be needed when a bank run occurs, according to a draft of the amended Law on Credit Institutions. Nguyen Thi Hong, governor of the SBV, or the central bank, presented the draft at the National Assembly Standing Committee
SBV to inspect share transfers among credit institutions
HCMC – The State Bank of Vietnam (SBV), the central bank, will focus on inspecting share transfers among credit institutions this year to prevent cross ownership in the banking sector. The above content, which has been approved by SBV Governor Nguyen Thi Hong, will be submitted to the National
A fiscal expansion
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
The return of hope
Modest growth reported by securities firms in the first quarter of 2023 came as no surprise given the dismal market conditions and the high base in the year-ago period. A predictable fall Securities firms reported lower revenue and profit in the first three months of the year. Leading companies
SBV buys nearly US$4.9 billion in Jan-Apr
HCMC – The State Bank of Vietnam, or SBV, bought nearly US$4.9 billion in the first four months of this year, thus shoring up the country’s foreign exchange reserves, according to the Ministry of Planning and Investment. As the exchange rate between the U.S. dollar and the Vietnamese dong remained
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,
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,