Banks Loans to Subordinate Securities Firms Limited

The State Bank of Vietnam issued a decision regulating credit organisation loans to their affiliated securities for trading stocks. The affiliated banks are can access mother bank loans only if they have mortgaged assets and no insecure loans are available.

As for securities companies in which banks hold controlling stakes, the total loan and guarantee must not exceed 10 per cent of their equity. As for other securities companies, the limit is within 20 per cent of equity. Loans for stock trading are listed on the assets group with risk index of 150 per cent.

 

In fact, many securities have been enjoying special treatments from mother banks, including low interest rate loans for securities trading.