Vietcombank and BIDV are among the first banks in Vietnam to allow customers to borrow in order to pay loans at other banks, The Investor is reporting. Regulations that restricted taking out loans to pay off other loans were rolled back earlier this month.
Why it matters: By giving customers greater mobility, this should create greater competition among banks which should lead to better products, service, and interest rates. It’s not clear why these loans were restricted in the first place.