The request came as the central bank has detected some signs of potential risks at some credit institutions through the monitoring of their operation in 2020.
Specifically non-performing loans on the balance sheet were on an upward trend compared to the end of 2019 and the bad debt ratio of some consumer finance companies was at a high level and increased at a faster rate than the previous year.
At the same time, credit to the property sector still accounted for a significant part of total outstanding loans while investment on corporate bonds for construction and property trading made up a major share of total investment in corporate bonds.
In its directive, the SBV asked credit institutions to strictly control the concentration of loans regarding some big customers and large-scale property projects.
The central bank also asked banks to strengthen the appraisal process, take risk prevention measures and proceed with caution when providing loans to high-risk property projects and in localities with a land craze.
At the same time, banks should continue to actively deal with bad debt and make provisions for dealing with risks in their operation./.
Source: nhandan.com.vn