Vietnam

BIDV will officially make its initial public offering on December 28, 2011.

BIDV will provide a package of preferential loans worth VND5 trillion or US$240 million to boost exports in select sectors.

Techcombank will use a long-term loan from the German Investment and Development Company to assist small and medium-sized businesses in Vietnam.

The State Bank of Viet Nam eased restrictions on lending to the real-estate and some other non-production sectors. A recent central bank decision requires lenders to ensure credit at reasonable interest rates to secure social welfare and stabilise the economy. It lifts a virtual ban on lending to property and housing projects that the SBV had imposed last March by mandating that commercial banks' outstanding loans to non-production sectors should not exceed 16 per cent of total loans by year-end. But the figure remained stubbornly stuck at above 16 per cent since property developers were unable to repay their loans due to the market slump. The new decision removes the bulk of the property sector from the list of non-production sectors. Banks can again freely lend to developers building apartments for low-income people and workers in industrial, economic and processing zones. Another category they can lend to is housing projects that will be completed before 2012. Besides, individuals can obtain mortgages based on their wages to buy or upgrade houses. Analysts say this is mainly aimed at enabling banks to achieve the 16 per cent ratio.

It was not a viable plan to carry out mergers among weak commercial banks, according to the deputy chairman of Vietnam's National Finance Supervision Committee. In order to strengthen a weak bank, it was essential to have sufficient funds to clear the bank’s bad debts, Le Xuan Nghia,said, adding that M&A between banks with financial weaknesses and liquidity shortage would make things worse as they obviously lacked funds to wipe out bad debts and already lost trust from depositors. As a result, Nghia suggested that financially-healthy commercial banks acquire weak ones and vice versa, weak banks should voluntarily seek to merge with large lenders. Through their M&A with small banks, big banks could take advantage of small banks’ operational network as well as customer base and enjoy future profitable opportunities as shareholders can sell their stock to foreign investors after the weak banks recover. Besides, experts worried that the actual bad debts in the whole banking sector were much higher than the publicized figures. Nghia commented on the issue, saying that Vietnam has been classifying bad debts differently from international standards.

ABBank aims to keep its bad debts ratio below 3% until the end 2011.

According to Bloomberg, Vietnam’s two-year government bonds snapped a three-day rally.

Dai A Bank announced to close the shareholders list for paying first round dividend on December 9, 2011. The payment date was supposed to be on December 26, 2011.

CLSA Asia-Pacific expects Banco de Oro, Metrobank, BPI and Security Bank to break their respective profit targets this year.

Vietcombank and Vietpay have entered a partnership to launch the new "VCB-eTopup" electronic top-up service.

Vietnam’s central bank plans to create a three-tiered financial industry dominated by 15 lenders.

The Bank for Investment and Development of Cambodia Plc has opened a new branch in Kampong Cham province.

VietinBank's planned $500 million international bond sale has been approved by Vietnam's central bank.

Orient Commercial Bank's  net profit fell 8% on-year to VND197.5 billion or $9.4 million in the first nine months of the year.

The Governor of the State Bank of Vietnam approved VietinBank’s application to raise its charter capital from current VND16.858 to VND20.23 trillion or US$1 billion.

Maritime Bank-MSB has submitted an application  to the State Securities Commission of Vietnam to be given the authority to to issue 100 million bonus shares at the 7-for-1-ratio.