Central bank online banking

Competition in the country’s credit card market has become stiff as more and more foreign and domestic banks as well as finance companies are competing to gain market shares. Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam Branch in HCM City, speaking at a seminar on online payments, says the biggest advantage of non-cash payments are time savings, no transportation fees, and safer transactions. Credit cards are expected to grow as more than 70 per cent of the population are young and the country has the fastest growth in both income and spending in the region. Internet retail is also growing. Young consumers are quicker to adapt to new payment methods and are making the switch from cash to card transactions. Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam's branch in HCM City, said at a seminar on online payments that the biggest advantages were the economic benefits, including time savings, no transportation fees, and safer transactions. … [Read more...] about VN banks compete for customers in credit card market

A plan to allow large Vietnamese State-owned commercial banks to pay dividends in shares or retain dividends would help them accumulate capital and meet regulatory minimum capital thresholds, Fitch Ratings said. Fitch-rated Vietnamese banks, including VietinBank, are estimated to need US$4.1 billion of additional capital to meet Basel II standards. However, the rating agency said, the positive effect is likely to be limited relative to the large capital needs State-owned banks face amidst rapid balance sheet expansion, underreporting of bad loans and Basel II implementation at the beginning of 2020. Media have reported that Vietnamese authorities have agreed to a proposal from the State Bank of Viet Nam that would allow State-owned banks to preserve internally generated capital by retaining dividends or paying them out in shares. The plan would still need to be approved by the National Assembly and would enable State-owned banks to follow a practice already in place for their … [Read more...] about VN banks face big capital burden despite dividend plan

Many commercial banks have reported profits of trillions of dong in the first half of the year. VP Bank on July 30 announced business results in the first half of the year with total pre-tax profit of VND4.343 trillion. It reported the credit growth rate and capital mobilization growth rate of 11.1 percent and 14.4 percent, respectively. VP Bank is one of a few banks that received approval from the State Bank for the compliance of Circular 41 on applying Basel II. This permitted the credit growth rate ceiling to be raised from 12 percent to 16 percent.  Techcombank also reported the record profit of VND5.7 trillion in the first half, an increase of 32 percent over the same period last year, and increase in revenue for the last 15 quarters. Its net interest income was VND6.5 trillion, up by 28 percent over the same period last year. Thanh Mai  In Vietnam, the banking sector has the highest salary According to audited financial reports 2018 from 20 Vietnamese banks, … [Read more...] about VN banks thrive with satisfactory profits, despite low credit growth

Hoi An ancient town in central Vietnam is becoming the focus of the world after it topped the list of 15 best cities in the world in a recent vote of the US travel magazine Travel & Leisure. Hoi An Ancient Town peacefully lies on the banks of Hoai River (Photo: VNA) Hoi An ancient town boasts its typical traditional architecture (Photo: VNA) Tan Ky ancient house has been recognized as a national monument in Hoi An (Photo: VNA) Small alleyways fascinate foreign tourists (Photo: VNA) Most of the ancient houses in Hoi An are designed with spacious and open air (Photo: VNA) Hoi An ancient town attracted nearly 5 million visitors in 2018 (Photo: VNA) There are many restaurants that help visitors enjoy the view of Hoi An's ancient beauty (Photo: VNA) Hoi An also captivates visitors with its special food (Photo: VNA) In recent years, Hoi An locals have developed craft making leather … [Read more...] about Hoi An – charming ancient city in central Vietnam

Vietnam’s banks are having difficulties meeting Basel II standards, including the quality of database, the qualifications of staff, technology infrastructure, training, and budget for consultants. By mid-April 2019, three more banks, Military Bank, TP Bank and VP Bank, had been allowed to apply ahead of time the capital adequacy ratio (CAR) in accordance with State Bank of Vietnam’s (SBV) Circular No 41 (Basel II’s CAR – the standard method). As such, six commercial banks have applied Circular No 41 ahead of time, namely Vietcombank, VIB, Military Bank, VP Bank, OCB and TP Bank. These include two banks – TP Bank and OCB – which were not appointed by SBV to pilot the application of Basel II. This, as commented by analysts, show that Vietnam’s commercial banks have taken the initiative in all their operations, from bad debt settlement to information system upgrading and risk management. Under the Vietnam’s banking sector development … [Read more...] about Vietnam’s banks strive to meet Basel II standards