Vietnam central bank raises capital adequacy ratio

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Vietnam's central bank raised the capital adequacy ratio for financial institutions and banks to 9 percent from 8 percent, effective Oct. 1, it said in a statement on its website Tuesday.

The State Bank of Vietnam also introduced a regulation requiring banks to lend no more than 80 percent of their deposits, while non-bank credit institutions can extend 85 percent at most, according to another document on its website.

The measures, which the central bank says are aimed at ensuring the safety of financial institutions, come as the government prods banks to boost lending and support economic expansion.

Vietnam's top priorities are stabilizing the economy, containing inflation and ensuring "solid" growth, Deputy Prime Minister Nguyen Sinh Hung said on May 20.

The World Bank will lend Vietnam US$688 million to fund projects in energy, health, poverty reduction and the environment, the central bank also said Tuesday.

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