SBV to inspect banks that pour too much capital into housing and securities loans

11-Aug-2018 Intellasia | Zing News | 6:02 AM Print This Post

In the last six months of the year, banks with high credit growth in real estates, stocks and consumption sectors will be subject to irregular inspections by the State Bank of Vietnam (SBV).

In Directive 04/CT-NHNN about the implementation of the key tasks and solutions of the banking system in the last six months by the SBV, the Governor, Le Minh Hung, requests the units at the head office to control the growth rate and credit quality of the whole system and each credit institution in accordance with the established aims and guidance.

The Instruction states not to consider adjusting credit growth targets for weak credit institutions, except for some commercial banks that are restructured in 2018.

The units must focus on credit for businesses and prioritised sectors, and control strictly credits into risky sectors such as real estates, stocks, Buildoperatetransfer (BOT) projects, and Build Transfer (BT) transportation projects.

In addition, in order to limit dollarisation and goldisation, SBV will carry out foreign exchange control measures, tighten foreign currency lending, and gradually reduce with roadmap to stop lending in foreign currencies.

The Governor of SBV requests the units to seriously inspect and supervise, especially with in the risky sectors with potentials for violations, in order to promptly detect and warn about risks and violations.

“SBV will conduct irregular inspections of credit institutions that have high credit growth rates in real estates, stocks and consumption sectors, accounting for a large proportion of total outstanding loans, and will strictly handle violations, especially the violations that have been warned about,” the head of SBV said.

In the last six months of 2018, this agency will also promote the collection of payments for public services such as taxes, electricity, water, education, medical and social security payments through banks instead of using cash.

SBV’s branches in provinces and cities must strengthen the inspection activities and strictly handle the violations in payment and settlement activities occurred in their respective localities, monitor and update information in order to promptly be warned of new measures and tricks of criminals in electronic and card payment.

SBV requests credit institutions to control the credit growth rate in line with the targets announced for 2018, ensuring safety in activities of lending, settlement of existing bad debts, and control of new bad debts.

“Credit institutions must strictly control consumer credit, especially consumer credit related to real estates, strictly follow the provisions of the laws on consumption lending, and use non-cash payment instruments to disburse capitals,” the head of SBV instructed.


Category: Finance, Vietnam

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