Latest news with #StateBankofVietnam
The Star
3 days ago
- Business
- The Star
Proposal to give State Bank in Vietnam special lending authority
A woman rides a motorbike past the State Bank of Vietnam in Hanoi on February 25, 2025. - AFP HANOI: The National Assembly continued discussions on May 29 on the draft to amend and supplement the Law on Credit Institutions, with a notable proposal to grant the State Bank of Vietnam (SBV) expanded authority to issue special loans, including those without collateral and at 0-per-cent interest. Under the proposed amendments, the SBV would be authorised to make rapid lending decisions to credit institutions in urgent situations of systemic risk or liquidity crisis. This marks a shift from previous legislation, where such authority resided with the Prime Minister. State Bank Governor Nguyen Thi Hong explained that the changes are necessary in light of rapid technological advancements and the increasing ease of banking transactions, which have made sudden mass withdrawals more likely. In emergencies where there's a risk of systemic collapse, the State Bank must act swiftly, Hong said. Lending without collateral and with a 0 per cent interest rate is extremely rare and only applies in very specific circumstances. These special loans would be reserved for cases of having mass withdrawals that could destabilise the banking system, or for institutions under special supervision as they work on restructuring plans. Typically, such loans still require collateral, often in the form of highly liquid assets or debts owed to the banks. Loans without collateral would only be issued in exceptional cases, when no suitable assets are available. Deputy Tran Thi Thu Dong supported the regulation for its potential to enable rapid intervention during liquidity crises. However, she also voiced concerns over the absence of oversight mechanisms when collateral is not required, raising the possibility of misuse. To address this, she proposed that the SBV be required to periodically report to the Government and National Assembly on all special loan activities, including borrowers, loan amounts, terms and outcomes. She also called for clear criteria to determine eligible recipients of these loans to prevent abuse and ensure the support targets institutions genuinely in need. Lawmakers also discussed the proposal on legalising the right for banks to seize collateral assets under clearly defined conditions. The SBV argued that formalising this right would reduce risks and costs associated with bad debt resolution, thereby encouraging more lending at lower interest rates and boosting capital accessibility for businesses. The draft law explicitly states that asset seizures must not be unilateral or unconditional. Instead, they must comply with strict procedures ensuring fairness, transparency, and the protection of all involved parties. Another major proposal came from Deputy Huynh Thi Phuc, who highlighted the urgent need to foster the development of a debt trading market. 'In the current environment of rising non-performing loans, creating legal provisions for debt trading is essential,' Phuc said. 'This would encourage the formation of investment funds specialising in distressed assets and streamline large-scale debt transactions.' Phuc also pointed to persistent legal and procedural barriers in transferring real estate projects used as collateral. She urged lawmakers to clarify the legal effect of such transfers and set clear responsibilities and deadlines for coordination among relevant agencies. - Vietnam News/ANN
The Star
02-05-2025
- Business
- The Star
Vietnam approves two-year trial of peer-to-peer lending
HANOI: Vietnam will begin a two-year trial of peer-to-peer (P2P) lending, credit scoring, and data sharing through open application programming interfaces from July 1, following the Government's Decree 94 issued on April 29. The decree establishes a controlled testing mechanism (sandbox) for fintech activities in the banking industry. Among the approved solutions is P2P lending - a model that connects borrowers and lenders directly via online platforms, bypassing traditional financial institutions. Under the pilot, only P2P lending companies licensed by the State Bank of Vietnam (SBV) will be allowed to operate. Foreign banks are excluded from participation. While credit institutions and fintech firms may join the trial, participation does not guarantee future compliance with business or investment regulations once formal laws are enacted. Vietnam currently hosts around 100 P2P lending companies, many with foreign investment. However, the SBV has raised concerns about transparency and oversight in existing agreements, citing a lack of loan management mechanisms and a heightened risk of disputes. Besides lending, Vietnam's fintech landscape includes approximately 200 companies, 90 per cent of which serve the banking sector with services like digital payments, credit scoring, and financial applications. Decree 94 also authorises controlled testing of these technologies, particularly credit scoring systems and data sharing through open application programming interfaces. The Government says the initiative is intended to foster innovation, enhance transparency, and improve access to low-cost, efficient financial services for individuals and businesses. It also aims to balance innovation with risk management, ensuring consumer protection in emerging fintech markets. Though the P2P lending activity that has emerged in Vietnam in recent years, the banking watchdog has warned some firms use the name of P2P lending model to deceive people who lack information, advertise falsely such as high profits, high interest rates to cheat, appropriate people's money to invest in this model or deceive borrowers about low interest rates, easy lending conditions while applying 'exorbitantly high' actual interest rate. — Vietnam News/ANN
The Star
28-04-2025
- Business
- The Star
Lower rates cause savings withdrawals in Vietnam
HANOI: The decrease in bank deposit interest rates has made savings less attractive, as customers have been gradually withdrawing money from banks to find other investment channels. According to statistics released by the State Bank of Vietnam (SBV) last week, deposits from economic organisations have decreased after five consecutive months of increases, causing bank lending to decline. Specifically, deposits from economic organisations have decreased by 3.04% compared with the end of last year. The decrease in deposits comes as savings interest rates have been declining continuously since after the Lunar New Year holiday. On Feb 25, the SBV held an urgent meeting with commercial banks and instructed them to cut deposit interest rates. The meeting came after Prime Minister Pham Minh Chinh issued a directive for the SBV to inspect commercial banks that increased their deposit interest rates and strictly handle violations. Immediately after the meeting, banks lowered their deposit interest rates. From Feb 25 to April 14, 27 banks adjusted their deposit interest rates down, with a reduction of between 0.1 and 1.05 percentage points per year, depending on the term. Currently, only a few banks, including GPBank, Vikki Bank and HDBank, maintain deposit interest rates above 6% per year. An investor who declined to be named said that the current savings interest rate was around 6% per year, while the price of gold bars and gold rings was anchored at historical peaks. Since the beginning of this year, the price of gold bars had increased by more than 22 million dong per tael (37.5g), equivalent to a net increase of more than 26%. Many people had therefore withdrawn their savings to buy gold. — Viet Nam News/ANN
Fibre2Fashion
23-04-2025
- Business
- Fibre2Fashion
Vietnam's PM issues directive on key measures to boost economic growth
Vietnamese Prime Minister Pham Minh Chinh issued an official directive yesterday, outlining key tasks and solutions aimed at driving economic growth this year, as the Party Central Committee and the Politburo have raised the national growth target to a minimum of 8 per cent for 2025 and to double-digit growth for subsequent years. The directive highlights the priorities to boost economic growth, maintain macroeconomic stability, control inflation and guarantee major economic balances. Vietnam's PM has issued an official directive, outlining key tasks and solutions aimed at driving economic growth in 2025. The directive highlights the priorities to boost economic growth, maintain macroeconomic stability, control inflation and guarantee major economic balances. He ordered quick, flexible and efficient action for immediate and long-term adaptation to the new US tariff policy. He told ministries, agencies and localities to quickly take flexible and efficient action for immediate and long-term adaptation to the new US tariff policy. The finance ministry has been asked to assess the impact of the US reciprocal tariff policy on the country and develop fiscal support packages for enterprises and workers in the affected sectors. The State Bank of Vietnam has been directed to monitor global and regional developments, particularly policy shifts in major economies, and effectively employ monetary policy tools to appropriately regulate exchange rates and interest rates, ensure adequate capital supply for the economy and maintain the stability of the monetary, foreign exchange and gold markets as well as the safety of the credit institution system, a domestic news agency reported. Special attention is to be given to cutting lending interest rates and offering short-term loans for businesses hit by the US tariff policy. The directive wants traditional growth drivers to be renewed and promoted, and preparations for the 2026-2030 medium-term public investment plan to be started, limiting the number of centrally funded projects to no more than 3,000. The focus should be on attracting more large-scale projects with foreign direct investment (FDI), and addressing obstacles to FDI firms, especially in administrative procedures. Fibre2Fashion News Desk (DS)
Yahoo
10-04-2025
- Business
- Yahoo
UOB boosts Vietnam footprint with capital injection
UOB has increased its charter capital of its Vietnam subsidiary to VND10trn (S$520m). The capital injection into UOB Vietnam of VND2trn is currently under review by the State Bank of Vietnam. The bank has made three capital injections into its wholly-owned Vietnam arm since 2021 and the latest move means its charter capital has doubled from 2021 levels. In addition, it is now the second largest foreign-owned bank in the country in terms of charter capital. Furthermore, UOB Group will also invest in a new headquarters building in the heart of Ho Chi Minh City's business district. This building will house most of UOB Vietnam's 1,500 employees and form the base for the Bank's future business growth in one of Southeast Asia's fastest-growing economies. With the completion of the headquarters in Vietnam, UOB will have local headquarter buildings across all five of its key ASEAN markets – Singapore, Malaysia, Indonesia, Thailand and Vietnam. Wee Ee Cheong, Deputy Chairman and CEO, UOB, said: 'UOB has established the most extensive footprint in Southeast Asia, and we have been part of the ASEAN growth story. Vietnam is a key market in our ASEAN strategy, and we are dedicated to deepening our presence here for the long term. The upcoming UOB Plaza in Vietnam is more than just a building. It epitomises our long-term commitment to the country. Having our own headquarters buildings in all five of our key ASEAN markets underscores our confidence in this region and the steadfast support for our customers and the communities.' "UOB boosts Vietnam footprint with capital injection" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
