The Vietnam News Agency has reported that the State Bank of Vietnam, the country’s central bank, has taken punitive measures against several of the 11 commercial banks that were inspected for issues related to investments in corporate bonds.
Following snap inspections into the banks’ investments in corporate bonds, the central bank has aimed to ensure compliance with the law and reduce the banks’ exposure to risks. The central bank has not disclosed the names of the banks that violated the regulations.
According to current regulations, banks are prohibited from purchasing corporate bonds and are not allowed to sell the bonds to their subsidiaries.
In the previous year, the central bank conducted 1,420 inspections, with 385 of them being unannounced.