Central bank inspect 11 banks

HCMC – The State Bank of Vietnam, the country’s central bank, has taken punitive measures against several of 11 commercial banks that have been inspected over matters related to investments in corporate bonds, the Vietnam News Agency reported.

The central bank has conducted snap inspections into 11 banks over their investments in corporate bonds.

The central bank has not disclosed the names of the banks that violated regulations.

The punitive measures are aimed at ensuring banks comply with the law and reduce their exposure to risks, the central bank said.

Under the current regulations, banks are banned from buying corporate bonds. They are also now allowed to sell the bonds to their subsidiaries.

Last year, the central bank launched 1,420 inspections, 385 of which were unannounced.