Tag: banking

Efficient credit allocation is central to controlling inflation and ensuring banking system safety.

The country's lenders are at the vanguard of an ambitious plan to digitise the economy, but significant challenges still lie ahead.

The first quarter of 2024 paints a mixed picture for Vietnam's market, with profit growth tapering off amid lackluster performances from key sectors. While some industries show promise, others struggle to meet expectations, signaling potential challenges ahead.

The Vietnam Banks Association (VNBA) held a seminar on October 26 entitled “Opportunities and challenges to apply blockchain to operations in the banking and financial sector”. A representative from Vietcombank pointed out the many obstacles for banks in applying blockchain, including the high cost of research and infrastructure investment and the long period needed to synchronize transition with other systems. A TPBank representative said it is necessary for banks to pilot a sandbox to successfully apply blockchain.

The State Bank of Vietnam (SBV) has simultaneously increased the refinancing interest rate to 5 per cent per annum, the rediscount rate to 3.5 per cent per annum, the maximum interest rate for demand deposits and terms of less than one month to 0.5 per cent per annum, and term deposits from one month to less than six months to 5.0 per cent per annum. Rates on overnight loans in interbank electronic payments and loans from the SBV to cover capital shortfalls in clearing payments to credit institutions and foreign bank branches is 6.0 per cent per annum.

A resurgence in banking stocks over recent days helped the VN-Index climb to a new record in hitting 1,500 points. This shows that bad debts rising but kept under control has not affected banking stocks to any great extent and the expansion of credit would take them even higher.

Forum hears of the benefits to be had as Vietnam embraces the digitalization of its banking sector.

Vietnam’s banking system boasts abundant finances, allowing for support to be provided to economic recovery, according to the Bao Viet Securities Company (BVSC).

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.

Online forum looks at how digital transformation is taking root in banking and finance sector.

Social distancing was a boon for online purchasing, with customers increasingly turning towards cashless payments. This is an opportunity for banks to break through in digitalization during the “new normal”.

In order for banks to continue to support businesses, especially those facing difficulties and that are sub-prime, it is necessary to have mechanisms and policies at a higher level to protect banks against potential huge bad debts in the future.

The Viet Dragon Securities Corporation (VDSC) has forecast that the net interest margin (NIM) of listed companies will be negatively affected in the short term and that recovery after re-valuation will be insignificant compared to last year. Overall, annual NIMs are expected to remain sustainable at a higher level compared to the pre-pandemic period, but below the peak between the fourth quarter of 2020 and the second quarter of 2021.

The tax sector will strengthen the solutions available to prevent tax losses, such as applying information technology and artificial intelligence to limit tax evasion and transfer pricing. Starting from this month, collections are being conducted via e-commerce platforms, which are responsible for providing and sharing information with tax authorities.

The Military Commercial Joint Stock Bank (MB) expects to post revenue of $5 billion and profit of $2 billion by 2026, despite the pandemic. Thanks to the promotion of digital transformation and technological infrastructure, its business activities have been stabilized and recorded positive results.