Financial Archive

Slow credit growth may hurt profits of banks

Posted September 29, 2015 By stoccato
Although banks have achieved more than half of their pre-tax profit target set for 2010, however many banks are now much worried about slow credit growth, which may affect their profits.
Chair of the Foreign Trade BPN, said that at the end of August 2015, it earned a pre-tax profit of 3 trillion dong, after setting up a prevention of risks. Its pre-tax profit target for this year was set at 4.5 trillion dong, according to Binh, the bank is likely to achieve this goal. But if compared with the pre-tax profit levels achieved last year at approximately 5 trillion dong, then its profit plans for this year was rather modest.

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Credit institutions have at least five years of operation before making a merger.

The proposal was included in a recent draft circular on the restructuring of credit institutions, for which the central bank is seeking opinions from relevant agencies and individuals before approval.

The proposal also requires credit institutions to submit a feasibility plan for any mergers, have a minimum chartered capital after merger equivalent to the authorized capital and meet other ratios as defined by the laws to ensure healthy operation.

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Developer refuses to file bankruptcy

Posted December 11, 2014 By stoccato

Investment General Corporation (SHN) will not file for voluntary bankruptcy despite being short of cash and burdened with a high bad debt ratio, said CEO Dinh Hong Long at the company’s shareholders meeting this week.

SHN has been on the verge of bankruptcy since the beginning of this year, when information leaked that the company would unlikely recover debt due from Beta BQP Joint Stock Co worth a total of VND238 billion (US$11.3 million).

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Vietnam may cut dong deposit

Posted November 20, 2014 By stoccato
Vietnam’s central bank may cut the ceiling rate on dong deposits by another 2 percentage points to 9 percent later this year to help boost lending and spur economic growth, a state-run newspaper said on Friday, as policymakers across Asia eye fresh stimulus to combat the global downturn.

Another rate cut in the pipeline would help ease corporate difficulties in accessing bank loans, after Vietnam’s economic growth slowed to an annual pace of 4 percent in the first quarter of 2014, the slowest since 2009.

The downward adjustment would be the last in 2012, the central bank was quoted by the ruling Communist Party-run Nhan Dan (People) daily as telling bankers at a meeting on Thursday.
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SBV to review capital rules

Posted March 8, 2014 By stoccato

The State Bank of Viet Nam will review new strict capital adequacy requirements imposed on commercial banks by Circular No 13, following an outcry from the banking sector and a directive from the Government.

The announcement late Wednesday helped boost shares on the nation’s stock market yesterday, Sept 9.

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