Vietnam Caps Loans for Stock Investments to Aid Bank Safety
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Vietnam will limit banks’ cross-ownership and their lending for stock investments to try to protect financial stability.
Banks can buy shares in a maximum of two financial institutions, with a limit of 5 percent for any stake that has voting rights, the central bank said today. Lending for stocks can’t exceed 5 percent of a bank’s registered capital, it said. The changes take effect in February.