Headlines 18/05/2021 07:58 SA

Real estate and securities credit quality needs to be strictly controlled

Minh Châu

The State Bank of Vietnam (SBV) issues the Official Dispatch No. 3029/NHNN-TTGSNH dated April 29, 2021 of several issues arising from operations of credit institutions and foreign bank branches.

According to this document, in order to ensure safety and limit risks arising from operations of credit institutions, SBV requests credit institutions to take the following actions:

- Strictly controlling the quality of credit in sectors facing potential risks, such as real estate, securities, BOT and BT road construction projects;…

- Taking drastic measures to recover bad debts, debts for which provisions are already used, and minimize losses incurred by credit institutions, and ensure the legitimate interests of the State and shareholders;

- Seriously implementing the SBV Governor's direction in the Directive No. 01/CT-NHNN dated January 7, 2021;

- Strictly controlling the credit growth rate in line with the 2021 targets, and according to measures for operation of monetary and credit policies.

- Valuing collateral according to their true value, and the principles of objectivity, transparency and compliance with regulations; balancing capital, and drastically, practically and effectively applying measures to support customers affected by Covid-19, natural disasters or climate change;

- Strengthening internal control of securities trading and foreign exchange activities of credit institutions.

For more details, please read the Official Dispatch No. 3029/NHNN-TTGSNH dated April 29, 2021.

>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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