Credit institutions will be subject to the control if they are given a weak ranking for two consecutive years according to the central bank’s regulations. VNA/VNS Photo HÀ NỘI The State Bank of Việt Nam (SBV)’s Governor or the directors of SBV’s municipal and provincial branches will be able to lace credit institutions under the SBV’s special control, starting from next month. Under Circular 11/2019/ TT-NHNN on special control for credit institutions, which will take effect of October 1 this year, credit institutions (excluding policy banks) that fall into one of seven cases will be placed under the SBV’s special control. First are credit institutions facing a shortage of highly liquid assets at 20 per cent or more at the time of solvency ratio calculation which causes them to fail to maintain the solvency ratio for three consecutive months. Additionally, credit institutions that cannot pay their debt obligation within one … [Read more...] about New special control regulations for credit institutions to take effect next month
All banks in the country have to adopt the standard version of Basel II and then switch to the advanced version by 2025. — Photo baokiemtoannhanuoc.vn In 2016 the State Bank set a deadline of January 1, 2020, for 17 banks to meet Basel II norms under a national banking sector development strategy. Also, by 2025 all banks in the country have to adopt the standard version of Basel II and then switch to the advanced version. Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. It comprises minimum capital requirements, supervisory review and market discipline to enhance competition and transparency in the banking system and make banks more resistant to market changes. Basel II requires banks to have a capital adequacy ratio (CAR) of at least 8 per cent. However, the SBV has allowed 10 banks to adopt Basel II standards earlier than the 2020 deadline. They are Joint Stock … [Read more...] about Basel II deadline rapidly approaching, are banks on course to meet norms?
Customers at a VPBank branch in Hà Nội. — Photo cafef.vn HÀ NỘI — The Việt Nam Prosperity Joint Stock Commercial Bank (VPB) has bought back 24.7 million shares, equivalent to 49.5 per cent of the registered amount, in the period from October 2 to 11. The bank needs to buy 25.3 million more shares in the second half of October. At the end of September, VPBank announced that it had planned to buy back 50 million shares in the market, equivalent to nearly 2 per cent of the charter capital, from October 2 to October 31, under either agreement or matching method. The purchase aims to stabilise stock prices in the market and increase the rate of return per share for investors, VPBank said. Capital for the purchase was sourced from undistributed profits. By the end of 2018, VPBank's undistributed profit stood at VNĐ6.3 trillion (US$269.3 million). At a meeting with market experts in the middle of last week, VPBank's leaders said the buying … [Read more...] about VPBank buys back nearly 25 million shares
Ratio of NPLs from 2016 to August 2019. Hue highlighted the Government’s determination at a video conference held on Wednesday to review two-year implementation of the National Assembly’s Resolution No. 42/2017/QH14 on settlement of credit institutions’ NPLs. Settling NPLs and restructuring credit organizations is one of the top priorities of the Government over the past years as the ratio of NPLs rose as high as 10.08% at the beginning of the Government tenure, Hue said. This is not an easy task as NPLs threaten macroeconomic stability, emphasized Hue while urging the credit institutions to take greater role in handling NPLs. Since the introduction of the Resolution, clear changes have been recorded in settling bad debts, restructuring credit organizations, and banking system development, noted Deputy Governor of the State Bank of Viet Nam Nguyen Kim Anh. Specifically, as of August 2019, the ratio of NPLs fell to 4.84% compared to 7.36% in 2017 and 10.08% in … [Read more...] about NPLs will be lowered to less than 3% by end of 2020
Some shipping companies have stopped operating on inefficient overseas routes and are instead using their vessels domestically, significantly reducing costs. — Photo cep.com.vn Compiled by Thiên Lý The Việt Nam Sea Transport And Chartering Joint Stock Company, Việt Hải Shipping & Real Properties Corporation and Seagull Shipping Joint Stock Company are among the maritime transport companies that have had to shift their shares in recent years from stock exchanges to the Unlisted Public Company Market (Upcom) due to their poor performance. Phương Đông Trade and Service Joint Stock Company reported a net loss of over VNĐ336 billion (US$14.6 million) last year, Việt Nam Shipping Industry Corporation reported a loss of VNĐ2.89 trillion ($125.4 million) and Việt Nam Sea Transport and Chartering Joint Stock Company reported a loss of over VNĐ255 billion ($11.1 million). While the domestic maritime … [Read more...] about Restructuring helps shipping companies turn around