A proposed regulation on collateral seizure could have major implications for Vietnam’s credit market. Defining “only” The first draft of a Government decree on “conditions for seizing collateral tied to bad debts” states that lenders can seize collateral only if it is not the borrower’s sole home and not their main or only tool for earning a living. The State Bank of Vietnam (SBV), which drafted the proposal, said the intent is to protect borrowers, ensuring they maintain basic living conditions. “Seizing collateral could worsen the borrower’s financial hardship, making it tough for them to support themselves or their families. Likewise, taking their only home could also leave them without a place to live,” the SBV noted. One sticking point is how to define “only” and who confirms it. Under the draft, borrowers must declare and prove that the asset in question is their only home or primary working tool. This requirement could lead to extra costs and paperwork, especially if third-party verification is needed during loan approval or collateral seizure. The SBV also acknowledged risks for lenders. “Imposing limitations on the seizure of a sole residential property used as collateral could also create risks for lenders. A borrower or […]
A proposed regulation on collateral seizure could have major implications for Vietnam’s credit market. Defining “only” The first draft of a Government decree on “conditions for seizing collateral tied to bad debts” states that lenders can seize collateral only if it is not the borrower’s sole home and not their main or only tool for earning a living. The State Bank of Vietnam (SBV), which drafted the proposal, said the intent is to protect borrowers, ensuring they maintain basic living conditions. “Seizing collateral could worsen the borrower’s financial hardship, making it tough for them to support themselves or their families. Likewise, taking their only home could also leave them without a place to live,” the SBV noted. One sticking point is how to define “only” and who confirms it. Under the draft, borrowers must declare and prove that the asset in question is their only home or primary working tool. This requirement could lead to extra costs and paperwork, especially if third-party verification is needed during loan approval or collateral seizure. The SBV also acknowledged risks for lenders. “Imposing limitations on the seizure of a sole residential property used as collateral could also create risks for lenders. A borrower or […]
A proposed regulation on collateral seizure could have major implications for Vietnam’s credit market. Defining “only” The first draft of a Government decree on “conditions for seizing collateral tied to bad debts” states that lenders can seize collateral only if it is not the borrower’s sole home and not their main or only tool for earning a living. The State Bank of Vietnam (SBV), which drafted the proposal, said the intent is to protect borrowers, ensuring they maintain basic living conditions. “Seizing collateral could worsen the borrower’s financial hardship, making it tough for them to support themselves or their families. Likewise, taking their only home could also leave them without a place to live,” the SBV noted. One sticking point is how to define “only” and who confirms it. Under the draft, borrowers must declare and prove that the asset in question is their only home or primary working tool. This requirement could lead to extra costs and paperwork, especially if third-party verification is needed during loan approval or collateral seizure. The SBV also acknowledged risks for lenders. “Imposing limitations on the seizure of a sole residential property used as collateral could also create risks for lenders. A borrower or […]
HCMC - Vietcombank, MBBank, VPBank, and HDBank will enjoy a 50% reduction in reserve requirements for taking over weak banks, starting in early October.
The...
HCMC - The State Bank of Vietnam has recently approved charter capital increase plans of several joint-stock commercial banks.
Asia Commercial Bank (ACB) has been...
Group-5 debts at banks continued rising in 2024. What percentage do they represent in the total outstanding loans in the banking system?
The nature of...
HCMC – Private banks that acquire underperforming financial institutions will be permitted to raise their foreign ownership limit from the current 30% to a...
HCMC – Several banks have increased deposit interest rates, with some offering 6-6.3% annually for long tenors.
BVBank offers an annual rate of 6.3% for...