Interest rate cut not as expected

Interest rate cut not as expected

Many commercial banks have announced a 0.5-3 percent cut in lending interest rates and many policies to support customers affected by the Covid-19 pandemic. However, feedback from individual customers in Ho Chi Minh City shows that banks have refused to aid them, even when they are in blocked areas and need priority.
Commercial banks sharply raise provisions to cover bad debts

Commercial banks sharply raise provisions to cover bad debts

Although commercial banks have restructured a lot of debts to support customers affected by the Covid-19 pandemic, in the recently released second-quarter financial statements of commercial banks, the total bad debts by June 30 still increased by 4.5 percent compared to the end of last year, equivalent to an increase of nearly VND124.9 trillion. In which, the ratio of debt group 5 (Potentially irrecoverable debts) at some commercial banks has recently increased rapidly.
Interest rates gradually decrease

Interest rates gradually decrease

The wave of interest rate cuts has been activated, and it is forecasted that the interest rate level will remain low from now until the end of the year to support businesses and the economy amid the context that the Covid-19 pandemic prolongs as currently.
Lending interest rates unlikely to decline sharply

Lending interest rates unlikely to decline sharply

Many economic experts said that with the current credit scale of over VND10 quadrillion if banks reduce the lending interest rate by 0.5 percent per annum, enterprises will have tens of trillions Vietnamese dong more to overcome difficulties. However, these experts also said that they barely expected a deep and wide wave of interest rate cuts because banks are enterprises themselves, so they must consider carefully when they give loans.
Banks direct credit flow into manufacturing, business sectors

Banks direct credit flow into manufacturing, business sectors

By the end of June this year, credit growth is estimated at 5.5-6 percent compared to the end of last year. With this growth rate, a representative of the State Bank of Vietnam (SBV) said that the credit growth target of 12 percent would still be achieved by the end of this year. The SBV will closely monitor macroeconomic developments, the situation of the pandemic domestically and internationally to direct credit growth to focus on lending to the fields of production and business and contribute to promoting economic development.
Many banks offer high dividend payout ratios

Many banks offer high dividend payout ratios

To prepare for the upcoming annual general meetings, many commercial banks have submitted to shareholders their dividend payout plans. Accordingly, many commercial banks offer extremely high dividends this year.
Deposit interest rates continue to drop

Deposit interest rates continue to drop

Although deposit interest rates are currently at low levels, since the beginning of December this year, State-owned commercial banks have continued to cut interest rates by 0.1-0.2 percentage point further for many terms compared to before.
A Vietcombank office in Bac Ninh province. (Photo: VNA)

New decree allows banks to keep profits

A new decree released by the Government will allow State-owned commercial banks to save cash to increase their strength instead of paying dividends to shareholders.
Commercial banks simultaneously cut mobilizing interest rates

Commercial banks simultaneously cut mobilizing interest rates

After the State Bank of Vietnam adjusted the ceiling of the mobilizing interest rates in Vietnamese dong for terms below six months, on March 18, commercial banks also simultaneously cut mobilizing interest rates for below-six-month terms.