Banks cut and reduce many types of fees

23-Oct-2018 Intellasia | Tien Phong | 6:00 AM Print This Post

Banks have recently cut and reduced the fees for card services and banking services, for example remittance fee, payment confirmation fee, loan-related fees such as consultancy fees, arrangement and project assessment fees, etc.

This information was presented at the live Conference about Public Administration Reform (PAR) and continuing to promote the implementation of Resolution 19 and Resolution 35 of the government on improving the business environment, enhancing national competitiveness and supporting the development of businesses in the banking sector organised by the State Bank of Vietnam (SBV) on 18th October.

Accordingly, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), in the period 2016-2018, has reduced or exempted nine type of fees, including: reducing remittance fee, exempting registration fee, annual fee for all BIDV online services, i.e., BIDV Bank, BIDV Bank Plus, BIDV Smartbanking, and cutting many fees for services registration or termination of service.

Military Joint Stock Commercial Bank (MB) has cut 16 types of fees, including three types of fees for confirming payment commitments, five types of fines related to the performance of commitments, six types of fees related to collaterals, two types of fees related to credit. The bank also reduce two types of remittances, cut fees related to cards, and reduced 50 percent instead of 30 percent for the Super VIP customer segment when making interbank remittance of individual customers. For corporate customers, it eliminated interbank remittance fees through electronic clearing.

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) implements the Zero Fee Programme (exempt 100 percent frees) for both individual and corporate customers doing remittances. The value of fees that customers can save from this programme values more than 100 billion dong.

Orient Joint Stock Commercial Bank (OCB) periodically reviews the bank’s tariffs to be in line with the general trend and ensures competition in the market.

Regarding the elimination of unreasonable fees in lending activities, BIDV has cut and reduced fees such as consultancy/arrangement/assessment fees; removed fee for retaining limits; adjusting limits, extending limits; eliminate fees such as collateral assets management, delayed drawdown fee, commitment cancellation fee, debt restructuring fee, fee for overdrawing, etc. At the same time, the bank stopped charging fees for providing credit commitment to customers, and fees for issuing the credit commitments or contracts in foreign languages.

According to Dao Minh Tu, the deputy Governor of SBV, the reduction of these fees is part of the programme to reduce the unnecessary business procedures to help improve the business environment.

“Despite that the reduction of unnecessary business procedures has shown results, there is still much work to be done to eliminate information gap between the banking system and businesses. Many businesses complained about the ability to access capital for production and business. The commercial banks need to focus on solutions to support people and enterprises to borrow capital,” Tu emphasized.

The SBV leaders said that in the near future, commercial banks will get healthier and improve their financial capability, focusing on raising funds and improving the quality of their own capitals. Banks should proactively, drastically and comprehensively carry out the measures to control credit quality, reduce bad debts, and improve assets quality.

Commercial banks also must strongly transform their business model into a diversified model with non-credit banking products; enhance expertise and professionalism in providing e-banking services; and prioritise the provision of credit to important and key industries and sectors of the economy, thus contributing to boosting the economic restructuring.

“Commercial banks need to improve and apply a risk management system in line with Basel II principles and standards and the application roadmap in Vietnam, to complete and apply the management standards in line with international practices; to develop the banking staff with high qualifications, compliance, ethics and responsibilities,” the SBV’s leader requested.


Category: Finance, Vietnam

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