Banks

The cut, which begins from this month to late 2021, will depend on each bank’s financial situation.

Moody’s decision in upgrading the country’s outlook by two ranks from negative to positive is “unprecedented” since the Covid-19 outbreak, stated Vietnam’s Finance Ministry.

Banks in Vietnam are responding to the government’s call in forgoing parts of their profits to support customers affected by the pandemic.

A low-interest rate environment in long term could make capital available for other investment channels, so banks are under pressure to readjust their savings mobilization rates to better attract idle capital.

In the first working day after a long holiday, customers often have high demand to open or withdraw money from saving accounts.

It seems a call from the central bank for credit institutions to forego their profits in 2020 to aid customers and businesses affected by the pandemic have not been effectively implemented.

The State Bank of Vietnam (SBV), the country’s central bank, could promote a reduction in financing costs and lower borrowing costs to help ease hardship for businesses.

As market markers, entities have the right to participate in the issuance and repurchase of government bonds and notes via bidding.

Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period.

Capital and expertise of foreign investors can help speed up the banks’ restructuring process.