VnExpress News The News Gateway of Vietnam
The State Bank of Vietnam has conducted surprise checks on 11 banks and fined some or all of them for violations of corporate bond investment regulations.
It did not release the names of offenders, merely saying in a release that inspections and fines ensure banks comply with the laws and reduce their operational risks.
Banks are not allowed to buy bonds to restructure debts and provide working capital. Banks are also not allowed to sell corporate bonds to subsidiaries of credit organizations.
The central bank said its inspectors verify if banks meet the government’s requirement on monetary policies and restructure of bad debts.
They also warn them against lending to risky sectors, it added.
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