As SBV regulations cap this ratio at 30 per cent, the group of joint stock commercial banks has been under great pressure to restructure their capital sources and outstanding loans to meet the SBV’s prescribed ratio.
As stipulated in Circular 08/2020/TT-NHNN, both Vietnamese banks and foreign bank branches in Việt Nam are required to reduce the maximum ratio of short-term capital for medium and long-term loans to 30 per cent as of October 1, 2023.
The central bank said that the development of the COVID-19 pandemic remained complicated worldwide and Viet Nam still faced a high risk of infection from external sources.
The central bank’s new policy aims to reduce risk, tighten control and to channel capital into priority sectors and small-to-medium-sized enterprises, according to the SBV.
The HCM Real Estate Association has suggested the State Bank of Viet Nam extend the application of regulations on banks’ maximum ratio of short-term funds used for medium- and long-term loans until the end of 2020.
Many banks have issued a large amount of bonds to raise capital in a move to meet high demand during year-end’s peak lending season and prepare to meet the central bank’s regulations on tightening the use of short-term funds for...
A report from the Ho Chi Minh Securities Company shows that bank interest rates have risen by 0.46 percentage points for short-term loans since the end of last year to 7-9 per cent and to 9-12.5 per cent for medium-...
The maximum ratio of short-term funds used for medium- and long-term loans will be reduced from the current 45 per cent to 40 per cent from January 1 next year, according to a new State Bank of Viet Nam (SBV)...
The Viet Nam Bank for Industry and Trade (VietinBank) has reduced interest rates for short, medium and long term loans to five sectors deemed as priorities by the Government.
The State Bank of Viet Nam (SBV) is adjusting for the second time the roadmap to apply the maximum ratio of short-term funds used for medium- and long-term loans.