SVB to crack down on banks violating housing loan regulations

Deputy director of the Ho Chi Minh City branch of the State Bank of Vietnam (SBV) Nguyen Hoang Minh yesterday said that they had reviewed all loan documents related to the social housing credit package VND30 trillion (US$1.35 billion) and would handle any bank breaking loan regulations.

SBV has reviewed all loan documents related to the social housing credit package of VND30 trillion (Photo: SGGP)

All commercial banks under the program have been asked to send their loan reports to the branch, which will examine the reports and compare them with other information sources.

Banks not complying with loan regulations will be handled as per Government’s Decree 96/2014 on penalty in monetary and banking field.

Those loaning wrong objects of the program will see their loans or interest reclaimed.

According to Mr. Minh, the inspection will not only penalize banks providing false loans but also find whether investors of social housing projects have abided by regulations related to the package.

The branch will list names of violators and send it to authorized agencies to handle.

By the end of July, commercial banks in HCMC have pledged to loan VND3.3 trillion, of which VND2 trillion has been disbursed.

About 97 percent of loan documents and disbursed fund have been provided by three giants including the Bank for Investment and Development of Vietnam, Joint Stock Commercial Bank for Foreign Trade of Vietnam and Vietnam Joint Stock Commercial Bank for Industry and Trade.

By Nhung Nguyen – Translated by Hai Mien

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