5:15:24 PM | 24/10/2007
Vietnam will be likely to allow banks to offer more loans to securities investors amid massive complaints about the regulation on securities lending.
The Monetary Policy Consultancy Council has recently had a discussion and given some solutions to the adjustment of the Decree 03, which imposes the cap of 3 per cent on bank loans for securities investment.
The council proposed allowing commercial banks to raise their loans to securities investors to 5 per cent of their outstanding loans, up from current 3 per cent.
The central bank should apply the lending to securities traders to 3 per cent of the bank’s total assets, not of their funds as currently.
The council also suggested delaying the implementation of the decree till June or even the end of 2008, instead of December 31, 2007.
The central bank launched the Decree 03 in May this year in an effort to curb a ballooning stock market. Commercial banks were asked to limit the loans to securities investors by 3 per cent of their outstanding loans by the end of 2007.
The decree is one of the most controversial topics of securities investors since then.
Some banks complained they have not enough time to reduce the lending rate as regulated. (VietnamNet)
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