Vietnam’s central bank should delay a directive that curbs banks’ loans for stock investment as the move will affect stock markets and could also hit the economy, the Lao Dong (Labour) newspaper reported, citing a proposal from the Bank for Investment and Development of Vietnam (BIDV).
The central bank should consider a gradual reduction of loans for stock investments, it reported, citing one of BIDV’s proposals to boost the country’s stock markets.
As of Feb. 1 banks must limit loans for stock investment at 5 percent of their registered capital, according to the central bank’s circular.
NOTE: Reuters has not verified this story and does not vouch for its accuracy. (Compiled by Hanoi Newsroom; Editing by Biju Dwarakanath)