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Reviewed Circular 13 eases credit requirements
The State Bank of Viet Nam has maintained a capital adequacy ratio (CAR) of 9 per cent - from 8 per cent - in its review of Circular 13. But it eased the requirements for deposits and lending.
The changes are subject to prime ministerial approval and the deadline for implementation of its provisions, which govern bank reserves, is still next Friday.
The Viet Nam Banks Association (VNBA) has welcomed the proposed changes as positive because they could be expected to lower interest rates.
The amended circular now with Prime Minister Nguyen Tan Dung would allow banks to lend up to 15 per cent of their non-term deposits and have their deposits with the State Treasury counted as part of their reserves.
The original circular would have restricted banks from making loans from non-term deposits lodged by the State, State entities, the social insurance fund or commercial credit organisations.
The amended circular would also allows banks to loan from three-month-term deposits made with other credit institutions.
Capital for bond underwriting will be taken from a bank's outstanding loans.
All this is expected to free the interbank market and provide more capital for banks to make money.
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