Five big banks may be disallowed to provide securities loans

Some banks may be disallowed to provide securities loans once the State Bank of Vietnam (SBV) issues a circular on capital adequacy ratio (CAR) of credit institutions.
The drafting circular, for replacing SBV’s Circular 13 and 19, will require the credit institutions (who want to continue providing securities loans) to ensure CAR at minimum 10%.

Meanwhile, according to latest data of National Finance Supervisory Committee, four banks namely Agribank, Vietinbank, Vietcombank and BIDV all have the CAR of below 7%.

In addition, Sacombank’s CAR is also less than 10%, citing its annual report of 2010.

Therefore, if applying the drafting circular, the five banks will have to stop securities-backed lending in the coming time. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jul 5 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry