Korean commercial banks are showing a steady growth in Vietnam (Photo: vietnambiz.vn) Hanoi (VNS/VNA) – The Republic of Korea’s banks are focusing more on Vietnam as the market emerges as a major source of earnings for them amid their slowdown from China. RoK banks are seeing their earnings in China decrease due to the prolonged trade between China and the US and the slowdown in economic growth rates. However, they are showing higher profits in the Southeast Asian region, including Vietnam, thanks to the RoK government’s New Southern Policy, the Business Korea newspaper reported. Korean commercial banks are showing a steady growth in Vietnam. Their net profits in Vietnam came to 131.80 million USD in 2018, showing a 116 percent rise (70.80 million USD) from 61 million USD in 2017, according to the data from the Financial Supervisory Service (FSS). Woori Bank Vietnam also saw its net profits surge 130 percent year-on-year to 8.17 billion won (6.83 … [Read more...] about RoK banks focus more on Vietnam for impressive growth
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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
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?
After reducing several key interest rates by 0.25 percentage points on September 16, the SBV’s agencies this week continued to announce the reduction of some service fees, which will help commercialbanks reduce operation costs and thus cut interest rates. Under Decision No 203/QĐ-TTTD, the SBV’s National Credit Information Centre (CIC) decided to reduce the prices of its credit information products and services given to credit institutions and foreign banks’ branches in Vietnam by 15 percent, starting from October 1 this year. According to the CIC, the reduction aims to help commercial banks cut operating costs, enabling them to lower interest rates. The cut will also help banks promote the use of CIC’s credit information to enhance their credit business segment and credit risk governance, which will contribute to reducing risks for the banking system. According to Nguyen Hoang Minh, deputy director of the SBV’s HCM City branch, the … [Read more...] about Banks get more support to cut interest rates
Large banks as well as smaller ones are seeking foreign investors in today's competitive market. BIDV has confirmed that it will issue 603 million shares to KEB Hana Bank, a deal which is expected to bring VND20.3 trillion. The bank from South Korea will acquire 15 percent of BIDV’s shares. LienVietPostBank, SHB, OCB, VPBank, TPBank and Techcombank have received hundreds of million dollars from foreign partners, including JPMorgan Chase Bank, IIB, IBEC, IFC and Deutsche Bank. Analysts say that Vietnam’s good economic performance has helped banks gain satisfactory business results. Besides, the open policy on attracting foreign investments, stable monetary policies and the strong rise of bank shares, which are leading the stock market, have prompted foreign investors to pour money into Vietnam’s banks. Thanh Lich Vietnam's OTC-traded bank shares too cheap for purchases Lack of disclosed information, listing plans and risks of non-performing loans are … [Read more...] about Foreign capital flows to Vietnamese banks