New regulation on stock-mortgaged loans (04/02)
06/08/2010 - 27 Lượt xem
The State Bank of Vietnam on February 1 announced a new decision to limit stock-mortgaged loans to 20% of the charter capital of credit agencies, instead of the current 3% of total debt balances.
Influencing the decision was the fact that stock mortgaged loans are the riskiest loans with the 250% risk rate.
The public criticized the new decision as the closer controls of the stock market because 20% of charter capital is lower than 3% of total debt balances. "The new decision may not boost the market like the banks hope", said Tuoi Tre Newspaper in an article yesterday.
Unlike the previous decision, the new rule indicates that the credit agencies must satisfy several conditions before granting loans for stock investments such as: announcing the rules of the loans, discounting guarantee documents, ensuring security in credit agencies' activities, below 5% bad loans of total debt balance…
The new point in the new one is that the credit agencies are not banned from lending their stock companies.
Last year, the bank announced its decision to reduce loan approval for stock investments to 3% of total debt balance to stabilize the stock market and reduce the risk to the nation's banking operations. However, this decision contributed to the downward trend of the stock market.
Source: SGGP
