Cash flow line of credit

To inject additional money into the economy, banks are also awaiting the SBV's revision of some risk-reward laws. The early notification of credit room by SBV and the revision of Circular 22/2019/TT-NHNN is a crucial condition for banks seeking to balance their capital The market heard speculation last week that the SBV will provide commercial banks with a credit line in January. Consequently, banks will be awarded a credit margin ranging from 10 to 12 per cent, depending on the bank. The credit rating of the whole system climbed by 14.5 per cent in 2022, the biggest rise over the previous five years. Dr. Le Xuan Nghia, an economic expert, said that in 2023, the SBV may consider boosting the money supply to help the economy owing to lessened external pressure and a higher inflation goal (4.5 per cent). As a result of the large base in 2022, economists anticipate that credit growth will decrease in 2023, expanding by 12 to 13 per cent. In addition to the credit room, … [Read more...] about Expanded credit probable for January

The capital structure of real estate last year suffered from the lack of other capital channels alongside, photo Dung Minh At the beginning of January, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong said that boosting public investment disbursement, executing tax reductions and extensions, and modifying real estate prices would unclog cash flow through the economy. “Since Vietnam’s monetary and credit indicators have reached a warning level, over-reliance on bank loan sources may result in future issues,” Hong said. Currently, the SBV’s top aim is to guarantee liquidity and keep the system stable and secure. In addition, to eliminate obstacles for enterprises and individuals, the banking sector has emphasised reforms and simplifications of lending processes to enhance access to finance Hong also said that for many firms that could not qualify for loans, the state must implement credit guarantees and small and medium-sized company assistance measures. Almost … [Read more...] about Real estate stability on top of SBV agenda

Minister of Planning and Investment Nguyen Chi Dung Many of Vietnam’s 2022 statistics were positive and beyond the forecasts. How did the country overcome the hurdles to get such good results? Vietnam has achieved comprehensive results in numerous sectors and fields, completing and exceeding some socioeconomic targets. Macroeconomy remained stable, inflation was controlled, and major balances were ensured. The average consumer price index was estimated at 3.15 per cent, and GDP growth was at 8.02 per cent. Financial markets and currencies are basically stable; interest rates and exchange rates are adjusted in line with market developments; liquidity is ensured, credit growth is reasonable, and bottlenecks of capital flow in the economy are removed, directing credit to production and priority sectors. Price management is directed drastically and effectively, especially for essential commodities like petrol and oil. These results come from the efforts of the whole political … [Read more...] about Resilient and strategic breakthroughs

Vietnam has launched its Green Economy Development Strategy, in which green credit activities and green banks play an important role. Can you share some initiatives that the banking sector has recently implemented? The policies and directions of the state, the National Assembly, and the government in the fight against climate change and environmental protection are obvious, reflected in the international commitments of the Vietnamese government, including the Paris Agreement and at COP26. Vietnam made the commitment to develop and implement stronger measures to reduce greenhouse gases (GHGs) to achieve net-zero carbon emissions by 2050. Dao Minh Tu, Standing Deputy Governor of the State Bank of Vietnam In that context, the banking sector has also been actively implementing and will continue to implement action programmes to direct the flow of green credit and capital for green economic activities. Accordingly, several contents of the banking industry have been set out … [Read more...] about Making growth greener