Central Bank to inspect lending to stock, real estate sector

By Anh Tu   August 9, 2018 | 08:05 pm GMT+7
Central Bank to inspect lending to stock, real estate sector
An employee counting money at a bank in Ho Chi Minh City, Vietnam. Photo by VnExpress/Anh Tu

The central bank has said it will inspect banks with large lending portfolios in real estate and stock markets.

Banks need to control loans in risky areas like real estate, stock market and build-operate-transfer (BOT) transportation projects, Central Bank Governor Le Minh Hung said in a new statement.

He said lenders that don’t follow the credit growth target the central bank has set, don’t classify debt and don’t set aside risk provisions according to the law will be punished.

Lenders with high credit growth in the above categories will be subject to unannounced inspections, he said. the central bank to inspect lending to stock, real estate sector.

Vietnam’s banking credit grew 18.17 percent last year. The central bank targeted a 17 percent growth for this year. In the year to July 20, the figure is 7.69 percent year-on-year, according to the State Bank of Vietnam.

 
 
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