VietNamNet Bridge - The State Bank of Vietnam says that outstanding consumer loans exceeded VND1,000 trillion in 2017, but market share held by finance companies shrank to less than 10 percent, very small compared with the total number of consumer loans. Consumer lending is an important business for banks Consumer lending has become an increasingly important business for banks. In 2017, VP Bank reported revenue and profit growth rates of 45 percent and 55 percent, respectively, from consumer loans. The State Bank of Vietnam says that outstanding consumer loans exceeded VND1,000 trillion in 2017, but market share held by finance companies shrank to less than 10 percent, very small compared with the total number of consumer loans. Its strategy of targeting young consumers and focusing on short term lending has quickly brought achievements. RELATED NEWS Consumer credit: nearly 47% of Vietnamese borrow money Consumer credit booms in Vietnam Thanh Mai … [Read more...] about Banks rush to provide consumer loans, compete with finance companies
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VietNamNet Bridge - Commercial banks are planning to take over finance companies to implement plans to develop consumer credit.The Military Bank’s (MB) buying of Song Da Finance JSC (CDFC) has resulted in the establishment of the MB Consumer Finance Company Ltd, an MB subsidiary with chartered capital of VND500 billion. After the deal was approved by the MB extraordinary shareholders’ meeting held on October 6, 2015, MB has become the latest commercial bank in the consumer finance sector. MB jumped into the market segment after realizing that the market has been growing very rapidly in the last 10 years while analysts predicted it would even see higher growth rate - 20-30 percent until 2019. Nguyen Minh Phong, a renowned economist, said he can see the great development potential of the consumer finance market which is reflected in the establishment of a lot of consumer credit divisions under banks and the establishment of a series of finance companies in recent months. A … [Read more...] about Commercial banks eye finance companies
VietNamNet Bridge - PetroVietnam Finance Corporation (PVFC) has finally found an ideal solution for it: "getting married" with a commercial bank - Western Bank. This may trigger a new wave of merging finance companies into banks in the future. With merger deal, Western Bank, PVFC, PetroVietnam have "happy ending" PVFC - Western Bank merger deal goes ahead PVFC, one of the two parties of the deal, late last week still denied the merger deal with Western Bank, saying that the plan has not been approved by the Prime Minister. Meanwhile, Western Bank many times implied that it would merge into the finance company, and that the plan has got the nod from the Prime Minister. It seems that the denial of PVFC has been ignored by investors, who have got uninspiring with similar things. The involved parties in Sacombank takeover affair and Habubank merger into SHB once denied the rumor about the deals, but they finally did exactly the things people thought they … [Read more...] about PVFC-Western Bank deal triggers wave of finance company-bank merger?
Finance companies’ annual reports show that their total assets and profits have decreased sharply. Finance companies’ annual reports show that their total assets and profits have decreased sharply Finance companies “lose weight” The sharpest decrease could be seen at EVN Finance, a subsidiary of the Electricity of Vietnam (EVN), whose total assets plummeted by 5,216.06 billion dong, or HAFIC, whose total assets decreased by 2,372.66 billion dong. The finance company belonging to the Vietnam Coal and Mineral Industries Group also has seen the total assets drop by 820.75 billion dong, while Song Da Finance (SDFC) by 369.47 billion dong. Most finance companies have shrunk themselves in the context of the worsening business environment. The report of a company pointed out that the biggest reason behind the sharp fall of the total assets and profits in 2011 was the sharp decrease of the assets profitable from lending, capital trade and investment … [Read more...] about Finance companies shrink themselves amid worsening circumstances
Management of consumer finance companies to be tightened HCMC – The State Bank of Vietnam (SBV) will closely monitor and inspect the operation of consumer finance companies to ensure a transparent and healthy consumer credit market. Data of SBV shows consumer credit has grown strongly in Vietnam in recent years. The total amount of consumer credit has seen a six-fold increase since 2011 to VND960 trillion (about US$42.3 billion), accounting for 15.7% of total outstanding loans, Thanh Nien newspaper reports. For finance companies alone, the total amount of consumer credit has increased 10 times since 2011 to VND74 trillion, making consumer credit the fastest growing segment with average outstanding loan growth rate of 40% per annum in the last three years. According to a report of the National Financial Supervisory Commission, consumer loans will maintain the high growth momentum in the coming time. The country’s total outstanding consumer loans in the year to end-November … [Read more...] about Management of consumer finance companies to be tightened