Local banks are boosting interest rates on dollar deposits as they vie with each other to tap stronger remittances from overseas Vietnamese just before the Tet holiday. A client fills out a dollar deposit form at an Asia Commercial Bank branch in Ho Chi Minh City. … [Read more...] about Vietnam banks woo overseas dollars with higher rates
A worker decorates the sign of the Saigon Commercial Bank at a location formerly operated by Ficombank. The bank's bad debt level was believed to be high before it merged with Ficombank and Vietnam Tin Nghia late last year. … [Read more...] about Bad debts could undermine Vietnam banking system: economists
To create a "trademark" in conducting the policy credit schemes, the Vietnam Bank for Social Policies (VBSP) always focuses on training expertise for its staff. Especially, through the technical cooperation project with the Policy Research Institute, Ministry of Finance, Japan (PRI) and Micro Business and Individual Unit, the Japan Finance Corporation, (JFC-Micro), VBSP has strengthened ability of credit analysis, particularly for small businesses. Closing ceremony on the technical cooperation project in VBSP Headquarters … [Read more...] about Credit analysis manual for Vietnam Bank for Social Policies
Vietnamese commercial bank earnings may drop after the central bank ordered lenders to reduce interest rates on existing loans to help companies cope with an economic slowdown. Lenders must cut rates on existing loans to below 15 percent “right after today’s conference,” Governor Nguyen Van Binh told banks at a conference in Hanoi on July 7. Banks paid dong depositors about 14 percent to lure funds at the start of the year, according to the central bank. “This is really bad for banks,” Nguyen Quang Thai, finance and accounting chief at Vietnam Bank for Agriculture & Rural Development, the nation’s biggest bank, said by phone Monday. “It will cut into our profit margin since we had to raise funds at high interest rates previously.” He declined to give an estimate of how much profit might drop. Vietnam is trying to boost an economy that expanded 4.66 percent in the three months ending June from a year earlier. Deputy Prime Minister … [Read more...] about Vietnam bank earnings may drop on central bank’s new rate order
VietNamNet Bridge - While some analysts note that a number of foreign banks have withdrawn capital from Vietnam banks, others see signs of a third investment wave from foreign investors. Vietnamese banks receive the third investment wave The first wave of foreign investment in the banking sector occurred in 2005-2008, when bank shares were traded at sky high prices at hundreds of thousands of dong per share. The second wave was seen in 2011-2014 with a number of outstanding deals such as the $60 million investment by Commonwealth Bank in VIB Bank in 2011 and the $40 million investment by IFC in An Binh Bank in the same year. The other big deals included Mizuho pouring $576 million into Vietcombank in 2012 and Bank of Tokyo – Mitsubishi buying a 20 percent VietinBank stake at $743 million in 2013. RELATED NEWS Anticipating high credit growth rate, banks predict huge profits 11 Vietnamese banks have combined total assets of $10 billion Thanh Lich … [Read more...] about Is there a third investment wave in Vietnam banks?