The State Bank of Vietnam (SBV) has asked credit institutions and branches of foreign banks to strictly implement regulations on selling collateral, to ensure safety in banking operations.

Regarding the sale of collateral with low payment capability, the SBV has required that credit institutions and branches of foreign banks implement the following tasks.

Firstly, they are instructed to seriously conduct accounting for loans in line with laws and classify and set aside risk provisions for uncollected loans.

Secondly, they are required to review and ensure the selling of collateral in accordance with regulations and have measures to handle any violations found.

Thirdly, they are instructed to enhance assessment and appraisement over the financial capacity and payment capability of buyers of collateral.

Fourthly, they are asked to closely follow the financial situation of asset buyers in order to promptly detect any emerging problems relating to the implementation of their financial obligations and have measures to control risks and deal with bad debts effectively.