Vietnam prime minister has recently directed the State Bank of Vietnam (SBV) to have measures to support the stock market, the local online newspaper Dau Tu Chung Khoan reported, citing its private source from the Ministry of Finance (MOF).
The central bank has just requested the State Securities Commission of Vietnam (SSC) to send it the proposal for credit measures to support the stock market previously approved by the government for the central bank to consider.
Earlier, Chair of the SSI, Vu Bang, said that the SSI will work with the SBV to carry out measures to support the development of the stock market.
Accordingly, the central bank should review outstanding loans to the stock market to have appropriate regulations to fight inflation, and at the same time prepare a roadmap for local lenders to actively adjust their operation.
The central bank should only restrict those credit institutions which fail to follow all prudent ratios from lending to the stock market, instead of imposing a “one size fits all” restriction on every credit institution.
In addition, other measures need to be taken to save the stock market, such as excluding loans for securities trading and investments from the category of non-production credits.