SBV announces to supervise commercial banks to correct activities | Bank and finance
According to clients, it is only when taking out insurance that they can be disbursed or obtain loans at a lower interest rate.
The SBV has just published a document on complaints from voters that customers are forced to take out life insurance in some commercial banks to obtain loans. The State Bank of Vietnam asserted that the Insurance Business Law sets out the principles, rights and obligations of parties involved in insurance business and operation on a voluntary basis and on the financial capacity of the customer.
The regulation also clearly states that insurance agency contracts signed with banks also do not require that insurance products be sold with or associated with banking products and services. The signing and execution of insurance agency contracts within the framework of the agreement between the insurance company and the bank must comply with the law.
The SBV said it would visit commercial banks to look into the matter. He promised to impose tough penalties on commercial banks that compel customers to take out insurance which is not really necessary when commercial banks extend credit to customers or approve loans to customers as per regulations. The SBV said it will continue to strengthen inspection and supervision of this activity, prohibiting commercial banks from persuading customers to purchase insurance. If violations are detected, the State Bank will throw a book on commercial banks in accordance with the provisions of the law.
In addition, based on the provisions of the Insurance Business Law of 2022, the SBV will coordinate with the Ministry of Finance to complete the legal regulations for insurance agents, conduct inspection and inspection. review of the activities of insurance agencies, and insurance agencies signing contracts with banks to ensure strict compliance with the right to freely choose insurance companies and insurance products adapted to customer needs.