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.
Corporate bonds still attract investors

Corporate bonds still attract investors

In the first two quarters of 2021, real estate companies are the winners of corporate bond issuance, with an issuance value of up to VND92.3 billion and an average interest rate of 10.36 percent per annum. In the context that interest rates on bank deposits stand at an extremely low level, corporate bonds remain attractive, especially for individual investors. On the other hand, many investors have been circumventing regulations over the past time.
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.
SBV requests banks to ensure capital for temporary stockpiling of paddy

SBV requests banks to ensure capital for temporary stockpiling of paddy

The Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, on August 10, sent an official dispatch requesting commercial banks to fully and timely meet capital needs and expand the credit limit granted to traders and enterprises so that they have enough capital to purchase paddy for temporary stockpiling and improve the area and quality of warehouses, preservation, and processing of paddy and rice, contributing to minimizing traffic congestion and the current paddy backlog in the Mekong Delta.
Illustrative image (Photo: SGGP)

Credit limit increase will support economy

Many commercial banks have now extended their credit growth limit for 2021. This could be the best solution offered by the State Bank of Vietnam because currently monetary policies do not have much room and the brunt of reducing lending interest rates is falling on the economy.
Banks set conditions to lower interest rates

Banks set conditions to lower interest rates

The recent news by several Commercial Banks to lower lending interest rates can be considered good for businesses in particular and the economy in general. 
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.