Credit institutions instructed to review and monitor personal loans

The Governor of the State Bank of Vietnam (SBV) issued Document No.4471/NHNN-TTR on June 16 to require the General Directors of credit institutions to implement regulations related to personal loans. Accordingly, credit institutions should fully and decisively comply with Item 1 of Instruction No. 01/CT-NHNN dated May 22, 2009 by the SBV on measures of ensuring prudential and effective operations of credit institutions.

Specifically, credit institutions should strictly review and monitor operations of all entities under their jurisdiction in extending personal loans, in particular :

- Complying with the regulations of the Government and the SBV on extending personal loans;

- Applying negotiable interest rates;

- Conducting inspection and assessing the quality of inspection before, during and after extending personal loans.

Based on the outcomes of these inspections, the General Directors of credit institutions should take proper measures against those banking staff and customers in case of possible offences; and promptly revise and improve professional procedures for more effective and prudent operations and better compliance with law.

Credit institutions are required to send their inspection reports to the Financial Supervision Agency before July 15, 2009.

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