The State Bank of Vietnam (SBV) plans to reduce the rate of short-term deposits used for mid- and long-term loans, which go mostly to real estate investors. The move is aimed at enhancing safety in the banking system.
The central bank warned commercial banks of this issue two years ago.
Recently, the State Bank of Vietnam (SBV) has released a draft circular on safety limits for banks and called for public comment on the proposed changes. This circular would tighten regulations on lending, especially in the high-end property segment.
Banks have been told to pay more attention to property lending, following the policy of the State Bank of Vietnam (SBV) to revise upward the credit risk coefficient applied to loans for buying houses worth over VND3 billion.
The State Bank of Vietnam (SBV) has asked for the control over real estate loans by credit institutions to be enhanced, especially in areas showing signs of land price fever.