HANOI: Vietnam will limit banks cross-ownership and their lending for stock investments to try to protect financial stability. Banks can buy shares in a maximum of two financial institutions, with a limit of five per cent for any stake that has voting rights, the central bank said yesterday. Lending for stocks cant exceed five per cent of a banks registered capital, it said. The changes take effect in February. The restrictions are part of a package of measures to help create a healthier banking system thats closer to international standards. Bloomberg
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