Vietnam Eases Long-Term Lending Rules for Banks, Benefiting Smaller Institutions
Business

Vietnam Eases Long-Term Lending Rules for Banks, Benefiting Smaller Institutions

Vietnam's central bank has raised the ceiling on the use of short-term capital for medium and long-term loans to 40%, potentially unlocking VND 1 trillion in credit. This move is expected to support sectors like real estate and infrastructure, with smaller banks anticipated to benefit most. However, concerns about maturity mismatch risk management have also been raised.

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