Gold Secured Lending Ratio Peaks 250 Pct
The State Bank of Vietnam (SBV) on October 8, 2011 issued the Circular 32/2011/TT-NHNN stipulating that the gold secured lending ratio is 250 percent at the maximum.
According to the circular, credit institutions are not allowed to lend gold purchase except for cases approved by the SBV Governor.
This regulation is another solution to tighten control in gold-collateralized loans in a bid to stabilise gold and forex market.
On October 6, the central bank allowed several commercial banks to convert mobilised gold into Vietnamese dong and other forms of money to increase the bullion supply to narrow the gap between Vietnamese and global gold prices.
Thanh Yen
Vietnamese
