Vietnam Central Bank to Tighten Negotiation-based Lending Activities
Governor Nguyen Van Giau of the State Bank of Vietnam signed Thursday a document, requesting local banks to tighten lending activities based on interest rates negotiable.
The central bank allows local credit institutions to provide consumer loans with negotiated interest rates while it bans them to lend to stock, real estate, and other financial investments.
All branches of the central bank must closely supervise their credit organizations in provision of negotiation-based loans and submit monthly report on the issue to the SBV.
A recent report by the SBV showed that credit growth was 33% as of the end of October, exceeding the whole-year cap of 30%. (SBV)
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