Topic: credit institutions

Many credit institutions already publicize their lending rates under PM directive.

Amended law adds new regulations on ownership and credit limits.

Legislature planning an extra-ordinary session from January 15-18.

Credit institutions invested $8.54 billion in corporate bonds in 7M, down 15%.

Decision issued to establish committee for restructuring credit institution network.

Bank instructed to manage monetary policy firmly, flexibly, and effectively.

Credit policy, interest rates, and exchange rates of the central bank were the most important factors in 2022.

Credit institutions continue to expect that deposit and lending interest rates will increase in the fourth quarter. A survey by the State Bank of Vietnam found that 59-61 per cent of credit institutions expect an average interest rate increase of 0.37 percentage points in the quarter.

At a seminar on the development of the corporate bond on September 13, analysts said the market has grown 30-35 per cent annually in recent years. If such growth can be maintained, the total market size will reach VND11.2 quadrillion ($473.68 billion) in the next six years, thus easing capital pressure on banks and credit institutions.

Banks involved in handling poorly-performing credit institutions, reducing lending interest rates to support businesses and individuals, and controlling credit in potentially risky areas have all had their credit growth limits adjusted by the State Bank of Vietnam. According to the World Bank, Vietnam’s credit-to-GDP ratio is among the highest in the world; a warning to the country about the potential risk of macro instability.