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Monday, April 22, 2024

SBV inspectorate probes several banks holding corporate bonds

The Saigon Times

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HCMC – The State Bank of Vietnam’s Inspectorate has been conducting inspections into seven banks that have invested in corporate bonds following the Prime Minister’s instruction in December ordering relevant authorities to tighten legal compliance in the stock and bond markets.

The seven commercial banks subject to the inspection include Techcombank, HDBank, TPBank, SHB, PVComBank, VietBank, and SeABank, the news site Dan Viet reports. Meanwhile, a similar inspection into Baoviet Bank is conducted by the Ministry of Finance.

The SBV Inspectorate conducted inspections at the seven banks between February and April. The inspectors have submitted initial outcomes of the inspections to the SBV Governor relating to the purchase of corporate bonds by these banks. The results have also been sent to the State Securities Commission to deal with any irregularities in using the capital mobilized via the bond issues.

Earlier, following problematic bond issues by the property developer Tan Hoang Minh, the Government issued instructions demanding relevant authorities to take action to ensure the stability, transparency and sustainable development of the corporate bond market.

According to the Government, the corporate bond market is a vital channel for enterprises to attract medium- and long-term capital, but numerous irregularities have been exposed of late, posing risks for bond holders and the economy.

The Prime Minister therefore asked the Minister of Public Security to establish violations for imposing punitive sanctions to ensure that the capital mobilized via this channel is put to use in a rightful and transparent manner, contributing to business development and macroeconomic stability.

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