On May 11, the State Bank of Vietnam (SBV) and the People's Committee of Ho Chi Minh City jointly organized a conference to discuss monetary and credit solutions to support and promote the economy of the Southeast region.
Each bank is required to review its banking system while giving tough penalties on those who require customers to buy insurance that is not really necessary when granting credit to customers, and approving loans to customers in accordance with regulations, according to the State Bank of Vietnam’s request.
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.
The State Bank of Vietnam Ho Chi Minh City Branch, on September 29, said that by the end of September 2021, the outstanding balance in the city was estimated at nearly VND2.7 quadrillion, up 6.41 percent compared to the end of 2020.
Recently, the conditions for corporate bond issuance to the public have been tightened by the State. This is a move to reduce risks for investors, especially for individual investors, so the number of issued corporate bonds has also fallen sharply. However, in the context that deposit interest rates remain at a low level, many enterprises have issued corporate bonds with high-interest rates to attract capital.
The State Bank of Vietnam (SBV) has tightened credit flow into the real estate sector which has been in an uptrend since early this year while HCMC Real Estate Association has warned of a virtual fever in property prices in some districts.