Increase risk control with margin lending and advances

According to the draft, the payment risk coefficient will be adjusted to classify each item more clearly. Receivables other than margin lending and securities operations will be subject to a risk coefficient of up to 150%.

For advances, the risk factor is also applied in increasing proportions: from 8% to 100% depending on the value of the advance compared to the owner's equity. Loans with a term of less than 90 days and accounting for more than 5% of the owner's equity will be subject to the highest risk factor.

In addition, the draft also expands the scope of determining the value of payment risks by adding items such as money in the securities trading account of the open-end fund management company, receivables from financial investments or contracts of the nature of securities repurchase.

These adjustments were made in the context of outstanding margin loans in the stock market continuously hitting new peaks. In the first quarter of 2025, the scale of margin loans exceeded 280,000 billion VND, up 13% compared to the end of last year. Meanwhile, market liquidity has tended to decline, with the average transaction value per session decreasing by nearly 16% compared to 2024.

Although the margin lending ratio on equity is still lower than the previous peak due to companies increasing their charter capital, the margin on total capitalization adjusted by the amount of freely transferable shares has exceeded the threshold of 10%. This shows that the level of financial leverage in the market is currently high, posing risks when the market fluctuates.

Competition in lending activities among securities companies is increasingly fierce, especially in groups affiliated with banks, with the advantage of abundant capital and large customer networks. However, focusing on lending to large customers or those with high collateral also poses the risk of portfolio imbalance if the market reverses.

In that context, adjusting the risk coefficient according to the practical level and scale is necessary. The draft amendment to Circular No. 91/2020/TT-BTC on financial safety indicators for securities trading organizations not only aims to better control the financial activities of securities companies, but is also an important step to ensure long-term market stability.

Source: https://nhandan.vn/tang-kiem-soat-rui-ro-voi-cho-vay-ky-quy-va-tam-ung-post883247.html