Vietnam SBV Allows Local Banks to Use Dollar g-Bonds as Collaterals
The State Bank of Vietnam (SBV), the country’s central bank, has decided to permit local commercial banks to use dollar-denominated g-bonds as collaterals to borrow dong loans from the SBV in order to support their liquidity, the SBV said.
The decision was effective from July 16, the SBV said.
The SBV is urging local banks to tighten credits for stock, real estate and consumers spending as part of efforts to curb total outstanding loans for the domestic economy at 25 per cent-27 per cent to tame inflation below double digits this year.
Total loans pumped by banks and financial companies into Vietnam’s economy jumped by 17.01 per cent in the first six months this year, the SBV said.
Between Jan and June, total deposits at banks expanded 16.2 per cent, the SBV noted.
Meanwhile, total payments balance, M2, of the economy climbed by 16.36 per cent during the time, the bank added. (Vietnam Economic Times)
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