SBV provides support to ensure commercial banks’ liquidity

Saturday, April 26, 2008
The State Bank of Viet Nam (SBV) has sent a document to commercial banks, affirming that SBV will strengthen the refunding of capital, in the form of guaranteed loans, to commercial banks to ensure their payment capacity, especially small-scale ones.

Together with the refunding capital, the SBV will also continue its capital support through daily open market operations.

The consideration and decision to grant capital refunding will be made quickly, based on the proposals of commercial banks, the real capital supply-demand situation and the objectives of the current monetary policies.

With this move from the SBV, the banking market in the coming time is expected to be less tense in capital supply an demand, thus lessening elements that boost interest rates to increase.

Earlier, members of the Viet Nam Banking Association have also reached a consensus on continuing to maintain the maximum interest rates for deposits in Vietnamese dong at 11% a year.