Roadmap needed to remove credit room

Roadmap needed to remove credit room

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. 
Current credit room no longer suitable

Current credit room no longer suitable

It may not be necessary to apply a credit room if the State Bank of Vietnam asks commercial banks to apply safety indicators seriously and substantively according to Circular 41/2016/NHNN-TT and Basel II.
Credit should be controlled by market mechanism

Credit should be controlled by market mechanism

Since the beginning of the year, when production and business activities have been resumed, credit growth has increased robustly. By the beginning of June 2022, the credit of the banking industry had risen by 8 percent compared to the end of 2021, a rather high increase compared to the target of 14 percent for the whole year 2022. Currently, the demand for loans from individuals and businesses remains extremely high, but many banks have reached the limit of credit room, so they cannot lend any more.
Banks reveal plans to pay dividends in cash

Banks reveal plans to pay dividends in cash

All commercial banks are planning to increase their capital greatly in coming years, in which the stock dividend will still be the mainstream. However, it is still a distant dream that shareholders will receive dividends in cash in the near future.
Customers are conducting transactions at a commercial bank in HCMC. (Photo: SGGP)

Vietnamese banks ready to offer interest rate support package

Commercial banks in Vietnam are currently launching the 2 percent interest rate support package from the State budget package of VND40 trillion (US$1.7 billion) for loans to businesses, cooperatives, and household businesses. This is a positive signal of economic recovery after the Covid-19 pandemic.

Banks do not completely cut credit for real estate

Banks do not completely cut credit for real estate

Recently, the State Bank of Vietnam (SBV) has sent a strong message, asking commercial banks to strictly control credit into the real estate sector in the context that the market shows signs of hot growth. This move leads to concerns that the real estate market will face difficulties in the near future.
Capital flow into real estate should not be blocked

Capital flow into real estate should not be blocked

Some banks have announced to stop providing real estate loans, and the corporate bond channel to attract capital for real estate has also been tightened. Faced with this situation, experts raised many financial and capital solutions to reduce risks and develop a sustainable and stable real estate market at the seminar on "Controlling capital into real estate - Policy and impact" held by the Ministry of Construction, on May 11, in Hanoi.
Many banks see increased profits

Many banks see increased profits

In the 2022 annual general meeting of shareholders, many commercial banks announced that profits increased sharply in the first quarter of this year.