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Banks with high property credits may face surprise inspections
Friday,  8/10/2018, 12:26 

Banks with high property credits may face surprise inspections

The Saigon Times Daily

Guests have a look at the blueprint of a property project on display at a hotel in HCMC. SBV will conduct unannounced inspections at credit institutions with a high proportion of loans going to the real estate sector – PHOTO: TL

HCMC – The State Bank of Vietnam (SBV) will conduct unannounced inspections at credit institutions with a high proportion of loans going to the real estate sector among their total outstanding loans, the local media reported, citing a newly issued directive of the central bank.

According to Directive 04/CT-NHNN on missions of the banking sector in the second half of the year, banks offering large loans for securities and consumption purposes as well as build-operate-transfer and build-transfer projects will face the same type of supervision. SBV Governor Le Minh Hung noted that the central bank would impose strict penalties on those caught violating banking regulations.

SBV also asked commercial banks to flexibly adopt monetary policies to stabilize the forex market and the macroeconomy as a whole, control inflation and regulate the supply of capital.

They should also control credit growth and quality and increase lending to production and business activities.

In addition, as per the directive, credit institutions are assigned to control exchange rates in line with market developments, stabilize the foreign currency market, reduce dollarization and goldenization and gradually terminate lending in foreign currencies.

The governor asks banks to closely cooperate with ministries, agencies and localities to remove obstacles to the application of Resolution 42 on the pilot resettlement of bad debts of credit institutions.

Moreover, local banks should effectively execute a scheme to promote noncash payments in Vietnam in 2016-2020 and another to boost payments through banks for public services, such as electricity, water, tuition fees and hospital fees.

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