Vietnam's State Bank urged to adjust securities lending policies
17 February 2012 Hanoi
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Vietnam's financial regulator, the State Securities Commission (SSC), has asked the State Bank of Vietnam to adjust its policies towards securities lending, with SSC chairman Vu Bang claiming the activity should not be classified as "non-productive" credit.
According to the Vietnam News Service, Bang has asserted that adjusting credit flows into the stock market would help ease pressure on the stock market as well as encourage investors to buy shares on the primary market, thereby contributing capital to companies and helping them develop operations.
He added that anticipation of a positive move by the State Bank on policy towards securities lending may have helped the stock market make gains in the first trading days after the start of the lunar new year, which was on 23 January. Several newspapers had commented that looser credit policies were expected, a move expected to give a shot in the arm to the stock market after three years of declines, VNS noted.
According to the Vietnam News Service, Bang has asserted that adjusting credit flows into the stock market would help ease pressure on the stock market as well as encourage investors to buy shares on the primary market, thereby contributing capital to companies and helping them develop operations.
He added that anticipation of a positive move by the State Bank on policy towards securities lending may have helped the stock market make gains in the first trading days after the start of the lunar new year, which was on 23 January. Several newspapers had commented that looser credit policies were expected, a move expected to give a shot in the arm to the stock market after three years of declines, VNS noted.
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