The State Bank of Vietnam has announced adjustment of credit limit for 2022 for fifteen commercial banks by 1 percent to 4 percent, and at the same time requested banks to step up disbursement of the 2-percent interest rate support package as per Decree 31/2022/ND-CP.
From the end of this year onwards, real estate businesses will face a worrisome period due to cash flow shortages as corporate bonds will begin to mature. This will be in sharp contrast to the enthusiasm with which these businesses raced with each other to issue bonds in the years 2019 until 2021.
The instability and negativities lately in the domestic interbank market like the 6.48-percent overnight interbank VND interest rate on September 7 has been attributed to three main reasons, according to Dinh Quang Hinh – Head of the Macroeconomics – Market Strategy of VNDIRECT Securities Co.
The State Bank of Vietnam is facing multiple pressures in 2022 in managing the foreign exchange rate, such as net withdrawal of hundreds of billions of dongs through the treasury bill channels, selling of foreign currency from reserves, and in adjusting the US dollar selling price.
The State Bank of Vietnam has plans to offer e-lending facilities and has recently made amendments to a draft for Circular 39/2016/TT-NHNN for the supplementing of a number of articles in it. This will pave the way for commercial banks to compete with several booming online lending platforms in the market today.
Central banks of countries such as Japan, China, Australia, Croatia and the Nordic countries have granted credit lines to their banks. However, as the banking system developed, this mechanism was dismantled.