Chủ đề: bank

The latest report from the Vietnam Bond Market Association (VBMA) shows that the banking and real estate sectors continue to heat up the bond issuance race, successfully issuing VND170.80 trillion ($7.48 billion) in total, or 72.7 per cent of the total. Vietnam’s corporate bond market was quieter in July, down nearly 33 per cent against June. In the long term, however, indicators suggest that the market still has much room for development.

With low interest rates on corporate bonds, banks have taken advantage of restructuring old debts and issuing new bonds as well as increasing bond purchases ahead of time to meet the State Bank of Vietnam (SBV)’s capital ratio regulations.

Banks have cut interest rates in recent times as part of supporting businesses and individuals to overcome the effects of Covid-19 on their financial position. In addition to restructuring repayment terms on VND550 trillion ($22.27 billion) worth of loans, banks have also exempted or lowered interest rates totaling VND31.4 trillion ($1.4 billion).

With money being continually added, the average trading interest rate in VND in the interbank market remains low while the transaction value of government bonds on the secondary market rose 42 per cent compared to last week. The State Treasury is expected to issue government bonds during the fourth quarter, but anticipated buying demand is not large, so the winning yield is expected to remain flat.

The professional reserve fund of Deposit Insurance of Vietnam currently stands at VND73.6 trillion ($3.23 billion). It contributes to the safety of the country’s banking and finance sector and is an important financial resource helping the agency better perform its functions and tasks.

In line with a move that began last month, some banks have shaved their deposit interest rates. ACB is currently offering the highest rate, followed by MSB and LienVietPostBank.

Central bank meets with airline and bank representatives as well as experts regarding support for aviation industry.

A draft Circular on bank guarantees will not prohibit banks from implementing guarantees for houses to be formed in the future during the period of special control. The draft also specifies regulations on foreign exchange management in guarantees.

The government has directed the State Bank of Vietnam to refund transaction fees for employers who have taken out loans from the Vietnam Bank for Social Policy to pay salaries.

Banks have become engaged in a race to waive or reduce service and payment fees to attract CASA (Current Account Savings Account) deposits and promote services based on an expanded customer segment. Digitization has greatly reduced bank transaction costs, so cutting bank fees will not overly affect profits. Fee exemptions and reductions can therefore be viewed as a profitable strategy.

Many businesses expect the State Bank of Vietnam to lower required reserve ratios, both to inject money into the economy and allow banks to have more capital and less capital costs so they can cut lending rates.

In order to avoid any disruptions to the rice supply chain, the banking sector has been tasked with providing credit to promote purchases. It is expected that rice exports will increase 1.6 per cent this year compared to 2020.

Private banks in Vietnam posted the highest growth in the first half of the year, of 10-12 per cent. According to Guotai Junan Viet Nam Securities (IVS), credit growth may hit 14 per cent this year thanks to the recovery of business and consumption. One of the main reasons IVS has maintained its positive view of the banking sector relates to policy.

The State Bank of Vietnam has issued a regulation stating that banks are allowed to buy bills and certificates of deposit (CODs) with a remaining term of less than 12 months in order to unify the transaction term between banks and the time limit for banks to discount with customers. Foreign bank branches will not be allowed to buy convertible bonds.

Banking analysts have said that Vietnam’s banking sector has improved its resistance to risk, especially bad debt risk, following restructuring.

Banks and securities companies held up to VND52 trillion ($2.26 billion) out of the VND208.9 trillion ($9.1 billion) in corporate bonds issued in the first half of the year, accounting for 55.6 per cent >>> Look at the figures - 55.6 per cent of $9.1 billion is not $2.26 billion. Or are you saying that the $9.1 billion in corporate bonds is $5.6 per cent of all bonds issued? (not just corporate bonds) <<< >>> I've checked the Vietnamese article, they said "55.6 per cent of the corporate bonds issued in H1 was held by banks and securities companies" and "