State bank urges banks’ voluntary consolidation

Yesterday, prime minister Nguyen Tan Dung participated in a conference with more than 30 scientists and economic experts for consultancy on macroeconomic policies.

Currently, troubled credit institutions which account for 6pct in the interbank market are nine banks that have been put under special supervision of the central bank, said Governor Nguyen Van Binh at the meeting. The remaining 94 percent have shown signals of stability with highest overnight rate staying at 13.3pct and averaging between 7pct and 8pct.

Commercial banks are now strongly encouraged to actively choose partners and voluntarily merge. The central bank’s interference would be available should any difficulties concerning consolidation procedure arise.

Additionally, relaxing interest rate has long been considered, yet fails to be drastically implemented due to existing liquidity problems, said HCM City Law newswire citing Governor’s statement. Also, he again affirmed quarterly interest rate cut of 1pct so as to bring mobilisation rate to 10pct by the year end.

 

Category: Finance