The State Bank of Vietnam (SBV) has been asked by electors from Long An province to reconsider or review the opening of a number of commercial banks there several years ago. A high bad debt ratio in recent years was the reason behind the request.

VietNamNet Bridge - Eleven banks were upgraded from rural banks with a small operating scale into urban banks with a larger scale. In order to become urban banks, they had to raise chartered capital within a short period. 

VietNamNet Bridge - Many banks were established after investors injected money into the banking sector which was believed to be the most lucrative business field. However, only a few of them remain in good health.

VietNamNet Bridge - Within the first six months, the State Bank bought three joint-stock banks for zero Vietnamese dong and assigned state-owned commercial banks to restructure the bought banks.

The dong/dollar exchange rate and the loss of state budget revenue from tax collections are the two most serious challenges for the national economy, according to a report issued in July by the National Finance Supervision Council.

The watchdog agency has reassured the public, saying that the dong/dollar exchange rate will not lose more than 2 percent of value by the end of the year and that the foreign exchange reserves have reached $37 billion.

VietNamNet Bridge - The Ministry of Finance (MOF) has asked the State Bank of Vietnam (SBV) to lend VND30 trillion to the state budget. Both MOF and SBV said the borrowing was not prohibited by current laws.

VietNamNet Bridge - While economists doubt commercial banks can reduce the bad-debt ratio to below 3 percent by the end of August, bankers said the target was within reach because the current situation is not as bad as once thought. 

The State Bank of Vietnam (SBV) has repeatedly urged commercial banks to take action to reduce the non-performing loan (NPL) ratio to below 3 percent by September 30. But it has proven to be an impossible mission.

VietNamNet Bridge - The State Bank of Vietnam reports that loans disbursed to the real estate sector have soared recently. 

VietNamNet Bridge - The State Bank of Vietnam (SBV) has taken a series of actions to clear cross-ownership which has existed in the banking system for many years.

VietNamNet Bridge - The Governor of the State Bank of Vietnam Nguyen Van Binh has said that the bad debt ratio will be reduced to 3 percent by the end of the year from 4.83 percent.

VietNamNet Bridge - Commercial banks which have not listed their shares on the bourse by the end of 2016 may be forced to undergo restructuring or merge with other institutions.

VietNamNet Bridge - The competition for shares of banks in the top 10 is getting stiffer: new buyers all are big tycoons with powerful financial capability.

Nguyen Hoang Minh, deputy director of the Ho Chi Minh City branch of the State Bank of Vietnam, shares with VIR’s ThuyVinh the city’s inward remittance picture during January-May and its growth perspective in 2015.

VietNamNet Bridge - The trade deficit figures reported in mid-May and the consumer price index (CPI) could cause difficulties for the State Bank in monetary policies.

The move by the State Bank of Vietnam (SBV) to change key personnel at GPBank and the appointment of a VietinBank executive as GPBank’s new legal representative will be followed by a “zero dong” plan, according to analysts.

The dollar price continued to fluctuate after the State Bank devalued the dong by one percent earlier this month. Meanwhile, the State Bank said there would be no further dong/dollar exchange rate adjustment this year.

 VietNamNet Bridge – As the greenback has been soaring against the dong in recent weeks, financial commentators have suggested this may be a result of dollar speculation in the forex market.

Though NPLs have increased significantly, which forced commercial banks to make higher provisions against risks, they still have reported an increase in profit in the first quarter of 2015 in comparison with the same period last year.