Credit ratings agency Moody’s has upgraded the baseline credit assessments (BCAs) of 12 Vietnamese banks, thanks to Vietnam’s strong economic growth and the banks’ progress in dealing with bad debt. The upgrade of BIDV, Vietcombank and Vietinbank’s BCAs largely reflect their improvements in asset quality, explained Moody’s, elaborating that funding and liquidity for these banks are stable as a result of their relatively lower reliance on market funds. Meanwhile, the upgrade of ABBank, ACB, MB, OceanBank, TPBank, VIB and Techcombank’s BCAs was due to improvements in their standalone credit strengths, particularly progress in resolving bad debt, and a strengthening of their capitalisation as in the case of OceanBank, TPBank and Techcombank. Moody's expects profitability for these seven banks to improve over the next 12-18 months as the burden of credit costs reduces. In the case of VPBank, the upgrade takes into account its high profitability … [Read more...] about Moody’s upgrades baseline credit assessments of 12 Vietnamese banks
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Moody’s raises Vietnamese banks’ baseline credit assessments
Vietcombank is among the 12 banks having their baseline credit assessments upgraded by Moody's Investors Service (Photo: VNA) Hanoi (VNA) - Moody's Investors Service has upgraded the baseline credit assessments (BCAs) of 12 Vietnamese banks in its latest report released on October 30. The BCA upgrade was driven by the higher Macro Profile, and by these banks' progress in writing off legacy problem assets. Specifically, the upgrade of BIDV, Vietcombank, and Vietinbank largely reflected improvements in asset quality. Their funding and liquidity were stable due to their relatively lower reliance on market funds, whereas capital remains a weakness for all three banks. The ABB, ACB, Military Bank, OCB, TPBank, VIB and Techcombank were also named in the 12-bank list thanks to improvements in their standalone credit strength, particularly progress in writing off legacy problem assets. Moody's expects profitability for these seven banks to improve over the next 12 to 18 months as the … [Read more...] about Moody’s raises Vietnamese banks’ baseline credit assessments
FE CREDIT wins three prizes at CEPI Asia Awards
CEPI Asia Awards, organised by the Cards International in collaboration with Electronic Payments International, is a leading event in the Asia-Pacific region to honour initiatives on developing credit cards, e-payments and marketing and trade promotion campaigns. This year, FE CREDIT won “Best Card Design” award for Vietnam’s first limited edition card which was launched during the Lunar New Year 2018. The company received the “Highly Commended” award for its product Fast Cash that allows cardholders access to cash through just one SMS and without an ATM booth, withdrawing money from post offices for free. For the “Best New Product, Service and Innovation Launch” category, FE CREDIT bagged the “Highly Commended” award for its MPLUS+ credit card, a locally-developed unique digital card solution to address card delivery issue in Vietnam. Kalidas Ghose, Vice Chairman and CEO of FE CREDIT, said “Customer-centric innovation is at … [Read more...] about FE CREDIT wins three prizes at CEPI Asia Awards
Property firms forced to wean themselves off bank credit
The HCM City Real Estate Association has recently proposed that the central bank should allow lenders to use 45 per cent of their short-term deposits for long- and medium-term loans next year instead of 40 per cent as it has mandated. — Photo baodansinh.vn Compiled by Thiên Lý The HCM City Real Estate Association has recently proposed that the central bank should allow lenders to use 45 per cent of their short-term deposits for long- and medium-term loans next year instead of 40 per cent as it has mandated. The State Bank of Việt Nam (SBV) has been reducing this cap every year, and it will drop to 40 per cent in January 2019. HOREA has now made this suggestion because the law allows property developers to invest only 15-20 per cent of a project’s cost and borrow the remaining amount, but banks are unable to meet this demand because short-term deposits account for a large proportion of their total deposits. For instance, deposits with different terms … [Read more...] about Property firms forced to wean themselves off bank credit
Credit growth must be controlled: experts
Experts said the credit growth target should be lowered to 12-14 percent this year. (Photo: VNA) Hanoi (VNS/VNA) - Authorities need to closely control the rapid increase in Vietnam’s credit-to-GDP gap so as not to cause high inflation as in the past, experts have warned. Reports from Saigon Securities Inc (SSI)’s retail research division showed high credit growth has pushed total outstanding loans of credit institutions to 7 quadrillion VND (299.15 billion USD), equal to 130 percent of the country’s GDP against the 100 percent rate at the end of 2014. With the rise, the credit-to-GDP gap has increased in the past few years, from negative growth in 2014 to 30 percent in 2018 the report noted, adding that the rate is much higher than that of other countries including Thailand (6.1 percent), Indonesia (6.8 percent), China (12.7 percent) and the Republic of Korea (-2.4 percent). “The rapid increase in the credit-to-GDP gap is a risk indicator that needs to … [Read more...] about Credit growth must be controlled: experts