Từ khóa: #Banks

At a time when most businesses are facing serious losses, with some even in dire situations and having to sell off much of their assets, banks continue to announce profits of thousands of billion dongs.

Even as the biggest real estate businesses struggle with debts and bankruptcy, banks continue to stay afloat and tackle the bad debt situation over a period of time. This ability of banks helps bank stocks not fall too low, despite overdue payments.

Banks in Vietnam are now very keen to tie up with financially strong foreign partners to increase their capital, especially in the current situation where capital flow is limited to small deposits and people are holding on to their savings.

When the general public at large begins to distrust the policies of life insurance, then it is the banks that life insurance companies turn to so as to regain their market base.

The State Bank of Vietnam's (SBV) - Ho Chi Minh City branch, the HCMC Department of Industry and Trade, and the HCMC Business Association on April 7 signed a joint action plan to implement Bank-Enterprise Connection Program.

Banks are maintaining a cautious approach in dealing with the current crisis in the real estate market.

After Vietcombank, HDBank has recently announced to lower lending interest rates for enterprises doing business in many industries with a total interest rate reduction of up to VND120 billion.

The recent financial statements of commercial banks for the second quarter show that the total amount of bad debts increased by about 17.5% compared to the beginning of the year. 

Many banks have so far not only closed their doors to real estate development borrowers but also restricted loans to home buyers.

Several banks claim successful management of cash flow in risk areas, particularly in real estate, while companies dealing in real estate continue to depend heavily on banks for credit source. 

When several banks announced the issuance of thousands of billion dong to mobilize medium and long-term capital at high interest rates, a rush for buying bonds followed, which turned into a frenzy towards the end of 2021.

The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.

During the first half of the year the economy was showing signs of recovery, which helped credit institutions to grow strongly once again. 

How to ensure financial sustainability and long-term financial services for the poor at the same time remains a headache for both policy makers and financial service suppliers.