Thursday, February 2, 2023 9:01:33 PM - Markets open
VN-INDEX 1,077.59 +1.62/+0.15%
HNX-INDEX 215.31 -0.70/-0.32%
UPCOM-INDEX 74.88 -0.05/-0.07%
Central bank promotes licensed consumer finance
Vietnam News - 12/17/2021 4:37:38 PM
 (0 ratings. You must sign in to rate.)
 The State Bank of Vietnam (SBV) will enhance inspections to discover illegal finance companies and protect the interests of consumers and licensed finance companies, according to SBV’s Governor Nguyễn Thị Hồng.
 
The decision was made in the Governor’s written response to questions from a National Assembly delegate on banking activities after the media reported some individuals and companies have recently set up and advertised unlicensed loan apps and websites that have affected the interests of consumers.
 
According to Hồng, the SBV has also received a request to co-operate in providing information to the Police for fraud and companies that violate the law.
 
The Governor said the SBV had directed its branches in provinces and cities to proactively report and propose to the municipal and provincial People's Committees measures to prevent fraud, stopping individuals and companies from carrying out or advertising banking products and services without getting licences from the SBV.
 
According to the Governor, consumer loans play an important role in socio-economic development as they improve the quality of life for people through the provision of credit to promote consumption. The increase in consumer demand will help promote production and create more job opportunities, making a positive contribution to economic growth.
 
Sharing the same view, economist Vũ Đình Ánh said in the context of declining incomes due to the pandemic, consumer lending is an important factor to stimulate domestic aggregate demand through a rise in retail and consumption. There will be a large number of people who need this type of consumer finance to enable them to fulfil needs and stabilise their lives.
 
Consumer credit is often used to describe an unsecured or collateralised loan to support financial resources to meet consumers’ needs such as housing, transportation, living facilities, study, travel and healthcare before they can afford it.
 
Compared with usury from unreliable sources, consumer loans from credit institutions will be a better and safer choice for consumers. However, experts noted when having access to credit, consumers need a written consumer loan contract, the form and minimum contents of which are specified in the State Bank of Vietnam’s Circular 43/2016/TT-NHNN dated December 30, 2016, to protect their interests and avoid undesirable consequences.
 
Sixteen finance companies are licensed to provide consumer lending with total charter capital worth more than VNĐ22 trillion (US$948 million). Those with the largest charter capital include FE Credit (VNĐ7.328 trillion), SBIC Finance (VNĐ2.532 trillion), EVN FC (VNĐ2.5 trillion), Home Credit (VNĐ2.05 trillion) and HD Saison (VNĐ1.4 trillion).
 
A number of banks have launched finance companies, such as VP Bank with FE Credit, HDBank with HD Saison, SHB with SHB Finance and MBBank with Mcredit.
 
Banking expert Cấn Văn Lực said Việt Nam’s consumer credit market had significant potential for development. Consumer loans are estimated to account for around 18-20 per cent of the total outstanding loans in the economy. — VNS  
 
Read original article here
 
Newer News
30/01 Reference exchange rate up 3 VND at week’s beginning
30/01 Reference exchange rate up 3 VND at week’s beginning
30/01 Outstanding loan falls sharply in Q4
30/01 Việt Nam among world’s 10 biggest recipients of remittances
30/01 State-owned banks under capital increase pressure
24/01 Cashless payments continue to grow in popularity
16/01 Insurance companies benefit from interest rate hike in 2023 [Sửa | Xóa]
11/01 Ministry calls for easing government control on fuel prices
11/01 Banking industry difficulties forecast to continue in 2023: analysts
09/01 Remittances boost HCM City growth
Older News
16/12 Reference exchange rate up 7 VND
15/12 Reference exchange rate up 5 VND on December 15
13/12 Reference exchange rate up 32 VND at week’s beginning
10/12 State Bank restrains banks investing in corporate bonds
10/12 Banks offer higher deposit rates after credit growth quota expanded
06/12 Remittances to Việt Nam to grow despite pandemic
06/12 Gap between domestic and global gold prices hits record high
30/11 Banks allowed to extend credit growth quota
26/11 Remittance to Vietnam forecast to continue growing despite pandemic
25/11 Reference exchange rate up 6 VND
 
Newsletter Signup
Top Stories
State-owned banks under capital increase pressure
Shares make large gains on banking, securities stocks
Trading in tight range ahead of Tết holidays
Enterprises in HCM City receive credit disbursement, but rates remain high
Market opens the new year on a positive note
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,077.59 +1.62/+0.15%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.