In order to control the risks related to corporate securities and bonds and contribute to ensuring the security of the credit institutions system, the State Bank of Vietnam (BEV) is taking measures to gradually perfect the legal framework, with stricter regulations.
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The Governor of the State Bank of Vietnam, Nguyen Thi Hung (standing), answers questions from deputies during 3e fifteenth sessione National Assembly.
Photo: VNA / CVN
The Governor of the Bank of Vietnam, Nguyen Thi Hung, just signed a report that answers sets of questions proposed in 3e fifteenth sessione The National Assembly is concerned with managing and controlling credits in sectors that involve risks such as securities lending, corporate bond issuance and real estate.
In April 2022, the credits reserved to the stock exchange sector represented about 0.5% of the total outstanding loans of the national economy, especially short-term loans (98%). The total balance of corporate bonds of credit institutions at the end of April 2022 amounted to VND 320.4 trillion, which is a small percentage of the total credit balance (2.86%). This proves that the corporate bond investment activities of credit institutions remained under control.
In order to control the risks associated with corporate securities and bonds and contribute to ensuring the security of the credit institutions system, BEV is taking measures to gradually improve the legal framework, with stricter regulations.
It will also strengthen the activities of strict inspection and control of credit granting by credit institutions in the stock market and investment in corporate bonds in order to quickly detect potential risks and take appropriate action.
Regarding real estate credit, the BEV noted that at the end of April 2022, the total outstanding amount was approximately VND 2.29 billion, an increase of 10.19% compared to the end of 2021 and represented 20.44% of the total outstanding loans of the national economy. . The bad debt ratio was 1.62%.
BEV seeks to improve the legal framework, to closely monitor the growth of existing loans and the efficiency of loans in the securities and real estate sectors in order to quickly detect risks and take corrective action.Appropriate treatment, which helps to ensure the security of the system of credit institutions.
VNA / CVN