Vietnam 

SBV tightens loans with savings books as collateral – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Commercial banks are required to strictly oversee capital use purposes and the disbursement of loans related to savings books. — Photo cafef.vn  HÀ NỘI — The State Bank of Việt Nam (SBV) has warned local commercial banks to improve control of loans that use savings books as collateral to ensure the safety of the banking system. According to the SBV, commercial banks are not allowed to let their clients use savings books as collateral to take out loans, pointing out that this process is illegal if these borrowers have…

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Global 

China outstanding bank loans fell in August, backing new moves to boost credit to support economy

The growth in China’s outstanding bank loans fell again in August, supporting the central bank’s decision to start easing credit conditions and suggesting further steps ahead to support an economy pressured by the trade war with the United States.The country’s commercial banks extended 1.21 trillion yuan (US$170.22 billion) in new loans in August, in line with expectations and higher than the 1.06 trillion yuan in July, according to data released by the People’s Bank of China on Wednesday… Source link

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Vietnam 

Central bank says small companies should be able to access bank loans – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Banks usually lend against collateral, but start-ups and agricultural projects do not have enough assets to pledge, small and medium-sized enterprises hard to access bank loans. VNS Photo Văn Châu CẦN THƠ – A conference meant to link up banks with companies in the Mekong Delta was held in Cần Thơ City on August as part of efforts to ease the difficulties small and medium-sized enterprises in the region have in accessing credit. Đào Minh Tú, deputy governor of the State Bank of Việt Nam, told the conference that the…

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Vietnam 

More steps to be taken to downsize foreign currency loans – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Firms will have to buy foreign currencies instead of borrowing from banks. — Photo cafef.vn HÀ NỘI — Commercial banks will no longer allow the provision of mid- and long-term foreign currency loans for offshore payments of imported goods and services from September 30 this year. According to the State Bank of Việt Nam (SBV), the move aims to implement the SBV’s policy to shift the foreign currency-related transactions from borrowing and lending to buying and selling to minimise dollarisation in the economy. Earlier, banks also stopped providing short-term foreign…

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China 

China’s banks resisting calls for more loans to firms due to rising default risks, lower demand due to trade war

China’s efforts to boost lending continue to struggle with many banks only willing to lend on a short-term basis due to concerns about creditworthiness, with corporate demand for credit declining at the same time due to the slowing economy and the effects of the trade war with the United States.Loan data for July released earlier this week was disappointing, with the levels of new bank lending and overall credit supply – also known as total aggregate financing – falling below expectations at 10… Source link

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China 

Bad loans in China’s banking system mount, rise 3.6 per cent in second quarter

Chinese banks have reported an increase in bad debts and a decline in capital adequacy ratio in the second quarter, as the year-long trade war has hit the country’s economy hard.Total non-performing loans in the mainland’s banking system rose to 2.235 trillion yuan (US$316.6 billion) during the three months to June, up 78.1 billion yuan, or 3.6 per cent from the first quarter of this year. The non-performing loan ratio edged up by a marginal 0.01 percentage points to 1.81 per cent during the… Source link

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Vietnam 

Real estate firms switch to bonds due to less bank loans – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Bond issuance is proving an effective channel and is forecast to become a major tool for real estate firms to raise capital in 2019. — VNA/VNS Photo  HÀ NỘI — Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said. Raising capital by issuing bonds is a new option for property enterprises at a moment when they have to look beyond banks for funds, said financial expert Bùi Quang Tín at a workshop held…

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China 

China loans jump in June as Beijing steps up credit support to boost economy amid US trade war

China’s bank lending rose as expected in June as Beijing stepped up credit support to Chinese corporations and key projects to help stabilise the economy amid the trade war with the United States.Chinese banks extended 1.66 trillion yuan (US$242 billion) of new loans in June, up from lending of 1.18 trillion yuan a month earlier, according to data released by the People’s Bank of China (PBOC) on Friday.The June lending was slightly lower than expectations of 1.70 trillion yuan, according to a… Source link

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Global 

China’s loans to rest of the world worth US$5 trillion, 6 per cent of global economy, new study reveals

The world’s debt to China grew tenfold between 2000 and 2017, according to new estimates from a German think tank, at a time when there are growing concerns about Beijing’s influence over global finance.As of 2018, the world owed more than US$5 trillion worth of debt to the government of China, or around 6 per cent of global economic output, according to a report published by the Kiel Institute for the World Economy last week.This is a huge increase from the US$500 billion owed in the early… Source link

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China 

China’s central bank is pushing commercial lenders to hold mortgage rates steady to curb the growth of home loans

The People’s Bank of China has asked commercial lenders not to lower the interest rate of home mortgages from the current level in order to curb the growth of home loans, according to people familiar with the matter.The PBOC offered verbal guidance to state-owned banks, joint stock banks and other commercial lenders, the people said, asking not to be identified as they’re not authorised to speak publicly. Banks received the guidance early this month, according to two of the people.The move… Source link

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