The Vietnamese government has given in-principle approval to a scheme that will have domestic commercial banks take over two weak peers, a central bank report says, part of broader efforts to clean up the banking system and reduce the number of lenders.
Vietnam is swiftly revolutionising its financial sector by phasing out outdated card technologies, embracing non-cash solutions, and enacting laws to enhance security.
The State Bank of Vietnam (SBV), the country’s central bank, has been issuing treasury bills to reduce excess liquidity in the system and is likely to continue to do so next week, said an analyst at leading broker SSI Securities.
The State Bank of Vietnam (SBV) raised the central exchange rate from VND24,088 to VND24,089 per U.S. dollar on Friday, another record high, but the rates at commercial banks moved in the opposite direction.
The State Bank of Vietnam adopted easing monetary policy with interest rate cuts in early 2023 to stay ahead of challenges, but further interest cuts may disrupt the country’s foreign exchange dynamics, the International Monetary Fund (IMF) said.