Law on consumer lending and the practice of application at commercial banks in Vietnam

Abstract

The article analyzes and clarifies the concept, characteristics, types, and roles of consumer lending at commercial banks; legal concepts and characteristics of consumer lending activities at commercial banks. At the same time, the article clarifies the basic contents of the law regulating consumer lending activities at commercial banks including concepts, characteristics, and content of the governing law, and experience of some countries such as Japan, China, and the United Kingdom on regulating ceiling interest rates for credit loans. Thereby, the writer presents recommendations and solutions to improving the law and the effectiveness of applying the law on consumer lending at commercial banks, including perfecting the law on the principle of protecting the rights and interests of parties involved in consumer lending activities, promulgating circulars and decisions giving guidance on consumer lending activities at commercial banks,
finalizing decisions on consumer loan interest rates, and supplementing decisions on consumer loan limits.