Topic: State Bank of Vietnam

Conference held by VnEconomy / VET and partners on December 7 provided an opportunity for banks, payment intermediaries, and service providers to discuss further advances in Open Banking.

$5 million program launched on October 25 to enhance financial inclusion in Vietnam through fintech.

Country joins Indonesia, Malaysia, Thailand, the Philippines, Singapore and Thailand in working to promote cross-border payments.

Meeting held following a request from the Prime Minister over concerns about limited access to credit by some businesses.

Some organizations found illegally trading foreign currencies.

In need of restructuring are Dong A Bank, CB Bank, Ocean Bank, and GP Bank.

Analysts believe that loan interest rates will soon cool down following management from the central bank and moves by commercial banks.

Mr. Alain Cany, President of the European Chamber of Commerce in Vietnam (EuroCham), told VnEconomy / VET that while devaluations of the VND have increased over the last two weeks, the currency remains strong, is improving, and is holding up better than many other currencies. The State Bank of Vietnam (SBV), he said, has been doing a good job.

The State Bank of Vietnam (SBV) believes that inflationary pressure is tending to increase. The 2022 figure is expected to exceed 4 per cent, posing challenges in control efforts next year. Cutting lending interest rates will also face difficulties, due to deposit rates and the USD/VND exchange rate both tending to increase.

KB Securities Vietnam (KBSV) has said that if banks use up the new credit limit, then credit in the industry as a whole will increase about 13.2 per cent compared to the beginning of the year. Therefore, the State Bank of Vietnam (SBV) can loosen the limit again, from 0.5-1.2 per cent, to achieve the annual target of 14 per cent.