The State Bank of Vietnam (SBV) on February 20 net injected more than 5 trillion VND (nearly 204 million USD) into the banking system through the open market operation (OMO) channel to support capital for commercial banks.
Prime Minister Pham Minh Chinh has instructed the Ministry of Finance, State Bank of Vietnam and the Ministry of Planning and Investment to address obstacles in relevant sectors for upgrading the stock market from frontier to emerging status.
It has been a period of heightened global economic tribulations, with Vietnam facing its share. State Bank of Vietnam Deputy Governor Dao Minh Tu spoke with VIR’s Hong Dung about its initiatives to enhance bank capital access for businesses and individuals, and catalysing economic recovery.
Vietnam’s new banking reform regulations introduces stringent ownership limits for individual and organisational shareholders in credit institutions to mitigate risks associated with cross-ownership and enhance financial stability.
Vietnam’s revised Law on Credit Institutions introduces broad reforms aimed at enhancing banking sector governance, transparency, and efficiency.
Many banks in Vietnam have received approval for substantial capital hikes, signalling a strategic effort to fortify the financial sector and enhance several essential ratios.
A new strategic regulatory reform by Vietnam’s central bank aims to balance risk management with robust credit expansion, particularly in sectors pivotal to the country’s economic growth.
Data from the State Bank of Vietnam showed that after a 5.5 per cent increase in money supply in 2022, there was a 13 per cent increase last year. Le Hoai An, a banking consultant and trainer at Integrated Financial Solutions, talked to VIR’s Hong Dung about the current money supply and velocity.
The country is estimated to have received a rise in remittances from overseas Vietnamese people in 2023, with Ho Chi Minh City taking the lead.
The State Bank of Vietnam is set to update regulations in response to market changes and global uncertainties affecting gold demand and prices.
The State does not encourage the trading of gold bars, protect their prices, nor accept too large differences between domestic and global gold prices, and between SJC and other types of gold bars, said Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.
Though the asset quality of banks in Vietnam will be temporarily under control until the end of 2023, experts said more attention should be paid to the issue in 2024 as bad debts are rising.
The State Bank of Vietnam (SBV) has requested credit institutions and branches of foreign banks to boost consumer lending as part of efforts to prevent loan sharks who have targeted vulnerable people.
There will be little room for further reduction in deposit interest rates in 2024 as they have dropped deeply to pre-COVID-19 levels, while the lending interest rate can still be lowered by 1-1.5 percentage points next year, Vietcombank Securities (VCBS) forecast.
The State Bank of Vietnam (SBV) announces a major regulatory overhaul for Open Banking, with comprehensive legal guidelines and circulars expected to come into effect by July 2024.