State Bank ensures liquidity for market

The State Bank of Vietnam (SBV) has confirmed its continued intervention to ensure the liquidity for the market.

The SBV said in the third quarter of the year, it will set up inspection teams to inspect and make comprehensive assessments of the operation of credit institutions nationwide, especially those in Hanoi and Ho Chi Minh City .

Last week, the State Bank decided to raise benchmark interest rate by another 2 percentage point per year, readjust rediscount interest rate and prohibit banks from tacking on extra lending fees.

The SBV also assisted a number of commercial joint stock banks, which are temporarily lacking compulsory reserves for June 2008, by offering sales of large volumes of their valuable papers.

To reflect foreign currencies supply and demand in the inter-bank market, the SBV readjusted the inter-bank exchange rate between the Vietnam dong and the US dollar and asked credit institutions to list buying/selling rates.

VNA

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