VietNamNet Bridge - The State Bank of Vietnam (SBV) has been taking a series of measures to stop dollarization, but the newly released 2015 financial report shows that the goal is still far away.

As the process of restructuring the banking sector is coming to an end, with the number of banks expected to decrease to 15, monetary institutions are going to see a lot of changes in high personnel.

VietNamNet Bridge - Contrary to predictions, businesses have remain unruffled though they have been told to stop borrowing money in foreign currencies in the second quarter.

VietNamNet Bridge - The bad debt ratio of the banking system has decreased, but the bad debt value has begun to increase again.

VietNamNet Bridge - Commercial banks are rushing to set up more branches and transaction offices after a long period of interruption.

VietNamNet Bridge - With new policies and ‘iron discipline’, the State Bank and Governor Nguyen Van Binh has led the banking system to sustainable growth.

 Though experts forecast a rise in lending interest rates in 2016, a central bank official believes it is feasible to keep the rates stable and reducing it slightly this year.

 VietNamNet Bridge – Large local banks, which are chosen by the State Bank of Viet Nam (SBV) to apply Basel II governance standards, are trying to increase capital to meet the standards.

The price of gold is now at a 6-year low, and is expected to continue to decrease. The real estate market has recovered, but risks exist, while the shock to the stock market in 2015 caused by the Chinese yuan depreciation remains a concern

VietNamNet Bridge - The increased demand for loans as well as the dong appreciation has increased the deposit interest rate. 

VietNamNet Bridge - The bankers that were seriously criticized by the local press in 2015 were those that managed banks involved in bad debt scandals.

VietNamNet Bridge - VCB Securities believes that the bad-debt ratio of the national economy may be as high as 11.02 percent.

 The State Bank of Viet Nam (SBV) will not issue new banknotes with denominations lower than VND5,000 (22 US cents) for the Tet (Lunar New Year) holiday to save costs.

The State Bank of Vietnam on January 4 launched the daily average inter-bank exchange rate between the Vietnam dong and the U.S. dollar and reference exchange rates between the dong and some other foreign currencies.

Credit is believed to be the service which feeds Vietnamese banks. However, the banking services provided to VIP customers make up 60-70 percent of revenue of many bank branches.

VietNamNet Bridge - Three banks with no dong have new CEOs and many other banks have appointed their CEOs. The changes in the banking sector have never been so big.

Bank for Investment and Development of Vietnam (BIDV), the country’s third-largest lender by assets, is seeking governmental permission to cooperate with France’s Aeroport de Paris to jointly invest in Airports Corporation of Vietnam.

VietNamNet Bridge - By 2020, Vietnam will have to open the market in at least 70 percent of the banking and financial services to bankers in ASEAN.

 VietNamNet Bridge – The State Bank of Viet Nam (SBV) will issue a new mechanism on foreign exchange management next year to cope with changes in the market, especially the global market.

Analysts have warned that the kieu hoi flow (overseas remittance) to Vietnam would slow, while Vietnamese may deposit dollars at Laos banks instead of Vietnamese as a result of the State Bank’s zero-percent interest rate policy.