Vietnam Lawmakers are Divided to Allow Foreign Banks to Lend to Stock Traders
Vietnam’s National Assembly has still not decided on allowing foreign banks in the country to provide loans for stock investors as the issue has stirred up controversy at the 6th NA meeting session.
The working group of the draft law insisted that foreign-owned banks and branches will be not allowed to lend stock investment as high risks may threaten the safety of the local banking system.
The Economics Committee, however, said that the ban on stock lending of foreign banks will have negative impact on the local stock market as money inflows will be limited.
In order to ensure the safety of the credit institution system, the committee has proposed the State Bank of Vietnam defines requirements and limitations for foreign banks in engaging in securities lending activities.
Vice Chairman of National Assembly Nguyen Duc Kien said the government will mull over the policy on stock and property market to avoid bubble as concerned.
Local banks have restricted securities loans since early this month until the end of this year due to fund shortage.
Money inflows into the market will rise from January after the fiscal year of 2009 ends, stock analysts forecast. (Vietnam Economic Times)
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