Will consumer loans remain a money-spinner for banks post-COVID-19? This was a question recently posed by market observers after witnessing the pandemic’s big economic impact on individuals and households, dragging down demand for personal loans.
The State Bank of Việt Nam’s new regulatory limits on unsecured consumer-finance personal loans will pressure the business models of more-exposed companies over the next few years, according to Fitch Ratings.
The competition to gain a larger share in the consumer finance market is heating up as rising capital demand before Lunar New Year is an opportunity for both banks and finance companies to boost the business segment.
HCM City, the country’s commercial hub, has the potential to become a fintech hotspot of the country and region, according to experts.
From October 1 lenders including banks will not be allowed to provide medium- and long-term foreign currency loans to businesses to pay for imports. Many market observers said this is the State Bank of Việt Nam’s final step in its fight against dollarisation.