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State bank announces measures to ensure commercial banks’ liquidity
The governor of the State Bank of Vietnam on May 15 issued a document requesting both its branches in provinces and centrally-governed cities and commercial banks to implement different measures to ensure the payment capacity of commercial banks.
Specifically, commercial banks are requested to take the initiative in capital balance and actively participate in the open market operations at the State Bank of Vietnam and other capital mobilisation methods to ensure their payment capacity.
In case the commercial banks are really in need of available capital but they do not have sufficient valuable papers to participate in the open market operations or fail to win the bid in the open market operations, they should make a proposal to the SBV for consideration of refinancing loans.
Commercial banks are not allowed to use the refinancing loans to extend their credit. SBV will consider granting refinancing loans to ensure payment capacity for commercial banks via two ways. Commercial banks can use their valuable papers as guarantees for their loans SBV will give loans according to credits files.
Commercial banks have to report daily to the SBV on their capital, use of capital and their payment capacity. Their capital loans or borrows with other credit organisations must also be reported to the SBV.
ND
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