The State Bank of Vietnam (SBV) has established working groups in Hanoi and HCM City to facilitate small- and medium-sized enterprises (SMEs) in accessing bank credit. The groups will be headed by the deputy directors of the State Bank branches in the two cities and will co-ordinate with trade associations to ascertain difficulties encountered by SMEs in obtaining credit as well as propose solutions. The work of the groups will be reported weekly to the central bank and publicized in the mass media. According to the State Bank, only about half of all SMEs have ongoing credit relationship with banks, and the Ha Noi SME Association has called upon the State Bank to do more to get banks to make more loans to SMEs. State Bank Governor Nguyen Van Giau, meanwhile, has vowed to keep management policies flexible to increase commercial bank liquidity, lower lending interest rates, and assist banks to restructure or extend loans for enterprises in difficulty during the current economic … [Read more...] about SME gets bank credit help
Bank credit report
Taking aim at banks’ credit growth
Industry insiders are attacking foreign banks' credit growth in 2012. In mid February 2012 State Bank deputy governor Nguyen Dong Tien said: "Some foreign credit institutions sharply hiked their chartered capital in 2011. In fact, they are good banks with risk management as well as business governance expertise. Hence, this bank group will be liable to see its credit hike to a level tantamount to chartered capital in 2012." In fact, the set credit benchmark will not be equally applied to all foreign banks and credit entities. Earlier, on December 13, 2011 central bank forwarded a dispatch to foreign banks and credit organisations requiring them to closely control credit activities in 2012 conforming to credit growth indexes assigned to each bank by the State Bank. "Most foreign banks operating in the country are of group 1 or group 2 banks as per Vietnam's classification standards for good risk management and high security standards. Hence, they should be given equal or maybe … [Read more...] about Taking aim at banks’ credit growth
Banks to report state firms’ foreign currency deposits
VietNamNet Bridge - The State Bank of Vietnam on Friday's evening asked financial institutions and banks to report on foreign currency deposits of state conglomerates by the end of next Friday. The report will have to cover all foreign currency deposits recorded until the end of this month of 21 state conglomerates and the affiliates. This is the next move after Prime Minister Nguyen Tan Dung Thursday required major state-owned companies to sell all their foreign currency to banks in an effort to support the beleaguered dong. … [Read more...] about Banks to report state firms’ foreign currency deposits
Bank rating report raises doubts, upsets lenders
A new report that ranked 32 Vietnamese banks based on their competitiveness has upset many lenders who say the authors were partial and unprofessional. Many bankers told news website VnExpress that they had never been contacted by the authors of the 2012 Credit Rating of Vietnam report, which rated them on an A to D scale. … [Read more...] about Bank rating report raises doubts, upsets lenders
Bank credit gets stuck, black credit prospers
VietNamNet Bridge ' Since businesses cannot access official credit sources, they have to borrow money on the black market. It's now the golden age for loan sharks to do business. Those, who pass the Nga Tu So cross-road in Thanh Xuan district in Hanoi in the afternoon, would be given the leaflets with the ad pieces about lending big sums of money with simple procedures. The lender, Chovay', promised to lend at '"very low interest rate'": borrowers just have to pay 1500 dong per day for every one million dong they borrow, or 0.15 percent per day. … [Read more...] about Bank credit gets stuck, black credit prospers