SBV Requests Banks to Follow Regulation of Credit Limit to A Customer
The State Bank of Vietnam (SBV) on July 18 delivered document No 4315/NHNN-TTGSNH to foreign credit institutions, stating its opinion on lending to a customer of over 15 percent of its equity in forms of Rollover (credit contract signed before 1/1/ 2011).
The SBV requested the lender to step-by-step cut the outstanding loan to a customer to under 15 percent of its equity, conforming with Item 1, Article 128 of Credit Law 2010.
If foreign credit institutions wish to lend to a customer higher than 15 percent equity, they must submit the plan to the SBV for consideration under Item 7, Article 128, Credit Law 2010.
Category: Legal
