Discussion on legal framework regulating loan sales in Vietnamese credit institutions

Abstract

Enhancing financial mark-to- market base requires the development of loan sales. Vietnamese financial market in
general and commercial bank system in detail is experiencing loan sales in wider range and more deeply. In fact,
the development of loan sales would help improving the banks’ financial ratios, reducing credit risk and generating
more profitable businesses. However, the mechanism and policies regulating banks’ loan sales now are still not fully
worked-out, inadequate and contradictable each other. This may obstruct the development of loan sales in commercial
banks. This research is going to give studies on legal framework regulating loan sale activities among Vietnamese credit
institutions and draw some suggessions to improve legal documents related to this area