As of September 24, credit growth had expanded 8.64 per cent compared to the end of 2018, the lowest increase in recent years. — VNA/VNS Photo Viet Nam's credit growth is slowing and can fall behind the central bank’s target of 14 per cent for 2019, causing concerns that it could make it difficult for businesses to access bank loans during the remaining months of the year. According to the State Bank of Viet Nam (SBV), as of September 24, credit growth had expanded 8.64 per cent compared to the end of 2018. The rate was the lowest increase in recent years, even lower than the 9.52 per cent rise during the same period in 2018. In the SBV’s September survey on business trends at credit institutions, many credit institutions also forecast that 2019 credit growth would increase by 13.61 per cent this year, lower than the central bank’s 14 per cent target. Growth has been slow in recent months. At the end of June, credit had increased by 7.33 per cent. The figure … [Read more...] about Credit slowdown causes concern about access to bank loans
Central sunbelt cloud banking
Central banks attempt to address sluggish growth (illustration photo) An interest rate cut by 25 basis points since 2017 by the State Bank of Vietnam (SBV) was recently accompanied by a message that sets a higher bar for further easing later this year. The annual refinancing rate and rediscount rate will be lowered from 6.25 to 6 per cent, and from 4.25 to 4 per cent, respectively. The annual overnight electronic interbank rate and rate of loans to offset capital shortage in clearance between the central bank and domestic banks will be also cut to 7 per cent. The interest rate of bids of valuable papers through open market operations will be reduced from 4.75 per cent to 4.5 per cent annually. The cut is made in the context of a stable domestic macro-economy, the SBV wrote in a statement, emphasising that “Inflation in Vietnam remains under control, while monetary and foreign exchange markets are also stable.” At a press conference held last week, SBV Deputy Governor Dao … [Read more...] about Central banks attempt to address sluggish growth
All banks in the country have to adopt the standard version of Basel II and then switch to the advanced version by 2025. — Photo baokiemtoannhanuoc.vn In 2016 the State Bank set a deadline of January 1, 2020, for 17 banks to meet Basel II norms under a national banking sector development strategy. Also, by 2025 all banks in the country have to adopt the standard version of Basel II and then switch to the advanced version. Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. It comprises minimum capital requirements, supervisory review and market discipline to enhance competition and transparency in the banking system and make banks more resistant to market changes. Basel II requires banks to have a capital adequacy ratio (CAR) of at least 8 per cent. However, the SBV has allowed 10 banks to adopt Basel II standards earlier than the 2020 deadline. They are Joint Stock … [Read more...] about Basel II deadline rapidly approaching, are banks on course to meet norms?
Hanoi (VNS/VNA) - The banking sector is waiting for the State Bank of Vietnam to allow the use of electronic know your customer/client (e-KYC). TPBank was chosen to trial it in January last year. According to LegalDesk Website, KYC or Know Your Customer is a process an institution employs for customer identification. The Securities Exchange Control board of India (SEBI) laid down that any institute that deals with financial transactions or functions as financial intermediaries needs to verify their customer’s identity under the Prevention of Money Laundering Act, 2002. With banks and mutual funds instituting the KYC process for all its customers, it did help with preventing money fraud and identifying suspicious transaction activity of an account holder. KYC is a one-time process that is mandatory for all people of Indian nationality. eKYC is the process of an institution getting acquainted with their customer, though electronically. The main objective of … [Read more...] about Client ID holds key to making digital banking safe
Recently-enacted Resolution 52 outlines policies to help reinvigorate the country’s relationship with Industry 4.0 tech Privately-held LienVietPostBank and its South Korean partner last week joined hands to bring Vi Viet, the bank’s flagship digital bank model, to South Korea for a test run of QR code payment deployment. Based on the bank’s study, the move does not impinge on current relevant regulations on risk management, loan limits, or international settlements. However, in a recent talk with VIR, Nguyen Dinh Thang, chairman of LienVietPostBank, raised his concerns over the potential compliance risks in the case of wider service deployment, as current regulations on digital banking, e-wallets and Electronic Know Your Customer (eKYC) remain unclear. The eKYC process is one in which approved entities require a digital ID system to authenticate or verify their customers’ identities and, in some cases, retrieve basic information about them. “We expect … [Read more...] about Compliance risk blocking banks from going digital