Saturday, August 24, 2019 11:10:55 AM - Markets open
VN-INDEX 992.45 -4.81/-0.48%
HNX-INDEX 103.25 -0.24/-0.24%
UPCOM-INDEX 57.95 +0.01/+0.02%
Credit institutions warned about P2P lending
https://vietnamnews.vn - 7/14/2019 8:15:12 PM
 (0 ratings. You must sign in to rate.)
The State Bank of Việt Nam (SBV) has warned Vietnamese credit institutions and foreign banks in the country to be cautious before working with peer-to-peer (P2P) lending companies as there are many risks related to the service.
 
In a document sent to lenders this week, the SBV said the fourth Industrial Revolution has promoted the development of many new products and services, including P2P lending, which directly connects borrowers with lenders.
 
According to the central bank, P2P lending can create a new capital supply channel and contribute to promoting financial inclusion, but it also has many potential risks that have been experienced across the world.
 
“Việt Nam hasn’t issued a law on P2P lending while the model has many potential risks, such as tax evasion, money laundering, terrorist financing and theft of personal information, which may cause socio-economic instability,” the SBV noted.
 
Due to the risks, to ensure the safety of the banking system, the SBV asked credit institutions to research the lending model so as to be aware of risks that might arise.
 
The SBV noted, credit institutions must be especially cautious about signing and implementing agreements with P2P lending companies to ensure they are in accordance with the law and don't affect their operation and reputation, as well as the reputation and safety of the entire banking system.
 
"During co-operation with P2P lending companies, credit institutions must require the companies to publicise accurate, transparent and honest information about the co-operation and transactional contents between the two sides,” the SBV stated in the document.
 
In addition, the central bank also told credit institutions to monitor the publication of information about the co-operation to promptly disclose false or inaccurate information that may cause harm to consumers and related parties for proper handling.
 
The SBV said it was carefully studying international models of P2P lending to develop a legal framework to manage the country’s nascent fintech sector.
 
SBV’s deputy governor Nguyễn Kim Anh said a legal framework could bring out the positive aspects of this service, while minimising risks and ensuring safety for individuals and enterprises, thereby enhancing financial inclusion in Việt Nam. VNS
 
Read original article here
Newer News
23/08 Reference exchange rate up 11 VND on August 23
22/08 Reference exchange rate down 4 VND on August 22
21/08 Reference exchange rate unchanged on August 21
20/08 Reference exchange rate down 2 VND on August 20
19/08 Reference exchange rate up 2 VND on August 19
16/08 Reference exchange rate up 5 VND on August 16
15/08 Reference exchange rate down 6 VND on August 15
14/08 Reference exchange rate up 10 VND on August 14
13/08 Reference exchange rate up 11 VND on August 13
12/08 Reference exchange rate continues downward trend from late last week
Older News
13/07 State budget revenue rises 13.2 percent in six months
12/07 Reference exchange rate revised down 5 VND on July 12
11/07 Reference exchange rate goes down by 15 VND on July 11
10/07 Central bank to keep monetary policy on hold through 2019
09/07 Reference exchange rate up on July 9
08/07 Reference exchange rate up 12 VND at week’s beginning
08/07 Banks announce impressive profits in first half of 2019
05/07 Forex reserves reach highest level to date
05/07 Reference exchange rate unchanged on July 5
04/07 Reference exchange rate revised up on July 4
 
Newsletter Signup
Top Stories
Shrimp export to China sees positive signs
Post-merger stock exchange headquarters in Hanoi
Listed companies honoured for best investor relations
Reference exchange rate up 2 VND on August 7
VN has trade surplus of about $1.6 billion in H1
Market Update
Last updated at 3:10:01 PM
VN-INDEX 992.45 -4.81/-0.48%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.