Analysts of the Retail Research and Investment Advisory Division at Saigon Securities Incorporation (SSI) have predicted 2017 will be a challenging year for banks to increase their Net Interest Margin (NIM).
Remittances to HCM City, which routinely accounts for the highest amount in the country, have topped US$1 billion already this year.
The apex body for the nation’s microfinance industry announced yesterday that the central bank had tentatively agreed to a number of measures it had requested to ease the burden on microfinance lenders following last week’s unilateral decision to cap annual interest rates at 18 percent as of April 1.
After the Federal Reserve (Fed)’s move of increasing the key USD interest rate by 0.25 per cent up to a range of 0.75-1 per cent, the exchange rate on the domestic market is under control. However, Huynh Trung Minh, a financial and banking expert, told VIR’s Van Linh that enterprises should be proactive in exchange rate risk hedging.
Not only the issues of human resources, bad debt, profit, dividends, but also the pressure of increasing capital to cater for updated standards in line with Basel II are pushing banks to exhaustion before and after their 2017 general shareholders’ meeting (GSM).
The vigorous restructuring of “zero VND” banks whose capital is believed to have fallen far below the minimum requirement of VND3 trillion ($140.6 million) is the main goal of the banking system this year. Dr Tran Du Lich, a financial and economic specialist, told VIR’s Thuy Vinh that buying out “zero VND” banks is only a temporary solution. It is time for the State Bank of Vietnam (SBV) to stop interfering with the restructuring of “zero VND” banks.
The Viet Nam Asset Management Company (VAMC) has proposed to raise its current charter capital from VND2 trillion (US$87.6 million) to VND10 trillion by 2020.
The International Finance Corporation (IFC), the private equity arm of World Bank group, has sanctioned an additional US$80 million credit package to Viet Nam Prosperity Bank (VPBank).
More organizations are offering new financial products and services that are changing the form and nature of the market and are shaping the future of financial inclusion.
A municipal spokesman responded yesterday to local media claims that Phnom Penh’s governor was considering issuing an order to remove stand-alone ATMs from public areas across the capital, clarifying that the governor had only called for financial institutions to provide better security measures at these locations.