Given abundant liquidity and low demand for credit, banks are offering attractive loans during the year-end period.

The State Treasury has mobilized trillions of dong via bond issuance, but still cannot spend the money because of slow disbursement in state-funded projects.

The three largest commercial banks in Vietnam have asked the government to lift the foreign ownership ratio ceiling in local banks. 

The State Bank of Vietnam (SBV) may not approve the commercial banks’ proposal on lifting the credit growth rate ceiling, but banks still believe they will be able to fulfill their yearly business plans.

Since the beginning of August, the interbank interest rates have stayed at high levels of 4.5-4.6 percent per annum for overnight, 1-week, 2-week and 1-month term loans, the highest rates since late 2016.

The liquidity surplus of the whole banking system has become alarmingly high. While the capital supply has been profuse, the demand remains very weak, which has made bankers worried stiff.

Accessing bank loans had never been an easy thing for small and medium enterprises (SMEs). However, things have become quite different -- banks have been trying to persuade SMEs to borrow money.

While the profits from the credit activities decreased significantly in 2012, the proportion of income from the investment in government bonds tends to increase.

Weak banks would be put under the special control, forced to merge to others or go bankrupt if necessary.