SBV tightens lending regulations with bad loans on the rise
27/11/2019 12:11
The State Bank of Vietnam (SBV) has taken steps to tighten regulations over banks’ use of short-term deposits, reducing its ratio used to finance medium and long term loans from 60 percent now to 40 percent by September next year.
By the end of September 2021, banks are expected to cut it to 37 percent. From 2021 to September 2022, the ratio must be reduced to 34 percent and from October 1, 2020 onward, it will be cut to maximum 30 percent.
The central bank’s policy aims to reduce risk, tighten control and to channel capital into priority sectors and small- and medium-sized enterprises, according to the SBV./.
Source: VNA