Peoples bank avurudu gift 2022

The aim is to steer the market towards a downward trend in interest rates in the future by lowering the ceiling on deposit and operating rates. The State Bank of Vietnam (SBV), the country’s central bank, has announced its decision to cut the policy rates for the third time in 2023, scheduled to take effect on May 25. Bank's staff at the BIDV-Hoan Kiem branch changes the lending rates. Photo: Pham Hung/The Hanoi Times As a result, overnight loans and rediscounts for interbank electronic payments and loans to cover payment settlement shortfalls between credit institutions and the SBV have been reduced from 6.0% per annum to 5.5% per annum. The refinancing rate was reduced from 5.5% to 5.0% per annum, while the rediscount rate remained unchanged at 3.5% per annum. The SBV noted that the maximum interest rate for sight deposits and deposits with a maturity of less than one month would remain at 0.5% per annum. However, the maximum interest rate for … [Read more...] about Vietnam’s Central Bank cuts policy rate for third time

Customers make transactions at an Agribank’s office. If being approval, Agribank’s charter capital will increase by VND17 trillion to VND51.4 trillion. — Photo vnbusiness.vn Charter capital of banks is expected to have a big change this year as four State-owned banks are considering an increase in capital while the State Bank of Viet Nam (SBV) has approved a capital hike for 21 private banks. On May 22, at the 15th National Assembly (NA)'s fifth session, the NA’s Economic Committee considered the Government's proposal to increase capital by VND17 trillion for State-owned Agribank, and the committee agreed with the Government to include the issue in the fifth session’s general resolution. Under the Government’s proposal, VND6.75 trillion of Agribank’s capital increase in 2023 will come from the central budget approved by the NA in Resolution No 70/2022/QH15 dated November 11 last year. In 2024, a maximum of nearly VND10.35 trillion for the increase will come from the State budget … [Read more...] about Banks expect big change in charter capital in 2023

Transactions at SHB. The capital surplus would help SHB foster the bank’s financial capacity, thereby enabling massive investment in digital transformation. — Photo courtesy of the bank SHB on Tuesday officially announced it successfully completed the transfer of the first 50 per cent of charter capital at SHBank Finance Company Limited (SHB Finance) to its partner - Krungsri Bank of Thailand - a strategic member of MUFG Group (Japan). They will complete the remaining 50 per cent in the next three years, subject to approval from the relevant regulators. The completion of the acquisition follows the capital transfer agreement announced on August 25, 2021. According to the Decision No 759/QD-NHNN by the SBV and the Establishment and Operation License No 21/GP-NHNN dated April 25, 2023, SHB Finance officially converted from Saigon- Hanoi Commercial Joint Stock Bank Finance Single-member Limited Company to Saigon-Hanoi Commercial Joint Stock Bank Finance Company Limited. Do … [Read more...] about SHB completed 50 per cent shares transfer to Krungsri Bank of Thailand

The central bank will continue instructing banks to reduce interest rates, share profits with businesses, and undertake debt restructuring with a greater sense of urgency. Commercial banks must continue optimizing their operational costs while reducing lending rates for both businesses and customers. Deputy Prime Minister Le Minh Khai at the meeting. Photo: Nhat Bac Deputy Prime Minister Le Minh Khai stressed the view during a Government meeting on May 24, discussing solutions to help businesses better access credit and lower interest rates . During the meeting, Khai emphasized the importance of the State Bank of Vietnam (SBV) carefully analyzing factors about credit issuance and the economy's capacity to absorb capital. Such a move will serve as the foundation for banks to devise strategies aimed at reducing costs and lowering both capital mobilizing and lending interest rates, he noted. “Reasonable capital mobilizing rate will be key to … [Read more...] about Banks urged to further cut lending rates

Lowering bank rates helps businesses and individuals access credit, stimulating the economy. Vietnamese banks have slashed their deposit rates to a maximum of 8.5% per annum, aiming to make credit easier to access for businesses and people. A Vietinbank office. Photo courtesy of the bank Banks cut their interest rates by 0.5% per annum for deposits of six months or less. For deposit accounts of more than six months, rates were reduced by 0.2-0.3% per annum on average. The four state-owned banks, namely Vietcombank, Agribank, BIDV, and Vietinbank, cut interest rates by a maximum of 0.4% per annum for deposits of more than six months, capping savings rates at 6.8-7% per annum. Private banks' deposit rates range from 8% to 8.5% per annum. Some banks with the highest interest rates are GPBank, SeABank, ABBank, VietABank, and PVCombank. As of May 28, depositors will receive interest rates of 7-7.7% per annum for savings with terms of 6-12 months. The … [Read more...] about Local banks cap deposit rates at 8.5%/year

Nguyen Minh Tam (R), deputy CEO of Sacombank, receives the "Outstanding Retail Banking" and "Outstanding Bank for Community" awards at a ceremony in HCM City last week. — Photo courtesy of the bank Sacombank won the awards for Retail Banking and Bank for Community at the 2022 Vietnam Outstanding Banking Awards that were given away in HCM City last week. It was for a sixth consecutive year that Sacombank won the awards given by the International Data Group, the Vietnam E-Commerce and Digital Agency, the Vietnam Banks Association, and other organisations. Sacombank won the "Outstanding Retail Banking" award for achieving consistent customer growth -- with its customer base topping 15 million by the end of 2022 -- and having large transaction, ATM and merchant networks and diverse products and services. It offers more than 250 products and services for individuals and corporate customers and has linked up with 110 banks and 30 e-wallets for money transfer. It won the … [Read more...] about Sacombank, Vietbank honoured at Vietnam Outstanding Banking Awards

The audit report for 2022, recently sent to the National Assembly, discussed certain shortcomings regarding loans and credits at commercial banks in 2021. Credit growth in 2021 reached 13.61%, with credit poured into real estate rising by 15.4%, stocks 23.85% and corporate bonds 17.65%, the report said. The economy's outstanding credit ratio to GDP remained high, at 114.3% in 2020 and 113.2% in 2021. It represents potential difficulties regarding the flow of credit into high-risk fields. The State Bank of Vietnam (SBV) has yet to issue any documents regarding the regulation and control of credit growth targets, both in general and for individual banks. This means that certain banks allow levels of loans above the ceiling as determined by the State Bank. A limit on credit is a measure used in recent times to manage credit growth inflation. However, the Economic Commission once requested the central bank to scrap this credit limit as it could distort the market and affect … [Read more...] about Certain banks allowing loans above limit

The central bank will keep the maximum interest rate on deposits of under a month at 0.5% a year, while the rate for term deposits of 1-6 months would drop from 5.5% to 5% a year, it said in a statement on Tuesday. Banks will still be allowed to determine their own interest rates for term deposits of above six months "in accordance with the market." This is the second time the SBV has reduced the deposit interest ceiling this year. The central bank will also cut the overnight electronic interbank rate to 5.5% from 6.0%, while keeping the key discount rate at 3.5%, it said in a statement. It will cut the refinance rate from 5.5% to 5%. The fresh rate cuts are "aimed at lowering the interest rate levels to help businesses and households have better access to credit," the SBV said in the statement. The central bank said inflation in Vietnam is under control while banks’ liquidity is abundant, facilitating its move to cut the rates, according to Reuters . April consumer … [Read more...] about Central bank to cut deposit interest rate ceiling

The move is set to help with the plan on developing the application of resident data and electronic identification and authentication to serve national digital transformation for the 2022 - 2025 period, with a vision to 2030. The banks and branches of foreign banks were told to actively carry out practical activities in response to the Cashless Day 2023 (June 16) and throughout June. Besides, the central bank recommended banks and branches of foreign banks in Vietnam coordinate with payment acceptance units such as power, water and telecoms service suppliers… to hold promotion events and advertise their services to encourage cashless payment./. VNA … [Read more...] about Central bank demands stronger promotion of cashless payment

Specifically, the SBV issued Decision No.950/QD-NHNN on May 23 regarding the refinancing rate, the re-discount rate, the interest rate for overnight interbank electronic payments, and the interest rate for compensatory lending. The move aims to address capital shortages for interbank offsetting payments. Under this decision, the interest rate for overnight interbank electronic payments and compensatory lending by the SBV to credit institutions decreased from 6 per cent per annum to 5.5 per cent. The refinancing rate was lowered from 5.5 per cent per year to 5 per cent, while the re-discount rate remained unchanged at 3.5 per cent annually. On the same day, the SBV also issued Decision No.951/QD-NHNN, addressing the maximum interest rate applicable to VND deposits held by organisations and individuals at credit institutions, as stipulated in Circular No.07/2014/TT-NHNN dated March 17, 2014. Accordingly, the maximum interest rate for non-term and term deposits of less than one … [Read more...] about State Bank of Vietnam implements third round of interest rate cuts to boost economy