VietNamNet Bridge - The State Bank of Vietnam has stated that commercial banks will have to "make a break with gold" from November 25, but it has not said about how to deal with the 400 tons of gold people now keep under their pillow, which experts believe is a huge capital for the national economy. Gold may help recover economy … [Read more...] about What will happen when banks stop mobilizing gold?
Central national bank mortgage
Kien arrest heats up National Assembly meeting
VietNamNet Bridge ' The Governor of the State Bank of Vietnam (SBV), Nguyen Van Binh, confirmed that the arrest of Nguyen Duc Kien did not have any connection to the Asia Commercial Bank (ACB) and other banks, but the central bank had prepared for ensuring the safety of the banking system. Kien arrest stirs up the public, vibrates stock market Binh was the second cabinet member who was grilled at the 10th session of the National Assembly Standing Committee on August 21. However, his part attracted public attention because of the arrest of banker Nguyen Duc Kien on August 20. According to the agenda, the governor would explain about credit institutions' bad debts and the banking restructuring plan. However, after the question about bad debts of Chairman Phung Quoc Hien of the NA Committee for Finance and Budget, deputy Do Van Duong of HCM City raised a question about the arrest of Nguyen Van Kien, who owns shares in many banks. Duong said that bad debts of credit institutions are … [Read more...] about Kien arrest heats up National Assembly meeting
$9.7 bln in bad debts: alarming, but not frightening: c.bank
Non-performing loans, which now account for some VND202.1 trillion, or 8.6 percent of total outstanding loans, are at an alarming rate, but not a frightening one, said State Bank of Vietnam governor Nguyen Van Binh. The figure was given by the SBV governor at a recent meeting with the National Assembly’s (NA) Standing Committee and other NA delegates. The session was broadcast live on the national television channels on Tuesday afternoon. … [Read more...] about $9.7 bln in bad debts: alarming, but not frightening: c.bank
Vietnam banks violate loan rules on homebuyer demand: mortgages
"Until recently I didn't have any strong intention to buy a house," says Ngoc, who borrowed four billion dong ($192,000) to purchase a three-story property about 1 kilometer south of Ho Chi Minh's mausoleum. "Property prices are going down. Interest rates are good. The timing is very good." Home loan applications have jumped since March, with buyers lured by 500 basis points of interest rate cuts, price declines of as much as 15 percent, and smaller, more-affordable apartments being offered by developers. Banks are skirting rules and may risk a cash crunch to meet demand: all have violated the central bank's 30 percent cap on the use of short-term funds for loans with terms longer than a year, State Bank of Vietnam Governor Nguyen Van Binh said July 20. "If you increase your exposure to the mortgage market but still have a lot of short-term funding, you will end up with a massive funding mismatch," said Fiachra MacCana, managing director of Ho Chi Minh City Securities Corp. "The … [Read more...] about Vietnam banks violate loan rules on homebuyer demand: mortgages
Moral Hazard In The Banking System
Moral Hazard In The Banking System By Hong Phuc Improving the quality of personnel is a must, as the banking sector needs high degree of transparency and professionalism The banking sector requires a high degree of transparency and professionalism, which attaches special importance to improving the quality of human resources for the system The manager of a transaction office of the Housing Development Bank (HDBank) in Long Binh Tan Ward in the southern province of Dong Nai was recently arrested on alleged appropriation of VND10 billion of the bank by fake dossiers, reported Thanh Nien newspaper. Two months earlier, Tien Phong newspaper reported that the Hanoi Police had detained Vu Tu, former general director of Tien Phong Bank, to investigate into his wrongdoings in the State economic management activities. The two aforementioned cases are just among innumerable uncovered cases in recent times in which bank officers infringed rules of the banking system. According to the central … [Read more...] about Moral Hazard In The Banking System