Regulations on personal unsecured lending by consumer finance companies will be tightened if a draft circular of the State Bank of Việt Nam (SBV) takes effect.

The State Bank of Việt Nam (SBV) withdrew a total VNĐ18.87 trillion (nearly US$829 million) from the market in the week of November 26-31.

Overseas remittances to Việt Nam are expected to decline mainly due to global factors.

Several banks are keen to establish consumer finance arms to grab a bigger share of a market that is expected to reach VNĐ1,000 trillion (US$4.38 billion) by 2020 and grow at 29 per cent annually.

Last year the VPBank-owned FE Credit-Consumer Finance Services added 2.7 million accounts to take its total number of customers to 3.3 million.

Sài Gòn-Hà Nội Bank (SHB) will issue 100 million shares worth VNĐ1 trillion (US$ 43.8 million) to shareholders under its merger plan with Vinaconex-Viettel Finance JSC (VVF), the bank announced in a statement on Monday.

The State Bank of Việt Nam this week approved in principle a plan to merge the Sài Gòn-Hà Nội Commercial Joint Stock Bank (SHB) and the Vinaconex-Viettel Finance JSC (VVF).