SBV re-tightens operations of financial leasing companies

The State Bank of Vietnam (SBV) on May 4 announced a draft decree on the operations of financial leasing companies.

Accordingly, the capital mobilisation activities and the capital adequacy ratio (CAR) of financial leasing companies will be controlled by the central bank. Financial leasing companies those want to raise capital for over one year via issuing certificate of deposits (C/Ds) and bonds must have at least one year of operations and total pre tax profit on equity at 10 percent and higher. Notably, before the issuance, the bad debt ratio on total outstanding loans of financial leasing companies must be less than 3 percent.

Currently, there are 13 financial leasing companies in the market operating in accordance with the Decree No 161 issued in 2001. – Thanhnien

Posted by VBN on May 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