Vietnam central bank stipulates conditions for banks to lend abroad

The State Bank of Vietnam (SBV), on Dec 30, 2011, issued Circular No.45/2011/TT-NHNN, stipulating conditions and scope for lending abroad of local credit institutions.

Besides, credit institutions are required to actively develop credit procedures, appraise loans, set aside provisions for risks, as well as abide by prudent ratios and credit growth rates set out by the central bank in each period.

The new circular demonstrated the central bank’s efforts in managing foreign lending and debt collection by domestic credit institutions prudently and tightly in order to proactively manage potential risks.

The new circular will also help to further complete the legal framework for local credit institutions to offer foreign exchange services in the international market.

Source Sophie/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jan 3 2012. 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