SBV Ensures Liquidity for Banking System

The State Bank of Vietnam (SBV) on October 18 announced that it is ready to support liquidity for credit institutions to ensure the smooth operation of monetary market, protect rights and interests of depositors and guarantee the safety of every credit institution and the entire banking system.

 

The SBV continues to strengthen supervision over monetary market and operations of each credit institution as well as the entire system to timely detect problems and launch appropriate measures to support credit institutions facing liquidity drain. The central bank will persist in credit crunch policy and strive to keep credit growth below 20 percent this year and total liquidity increase at 15 - 16 percent.

 

The SBV said some banks had rapid credit growth in the past months, resulting in an imbalance in deposit and lending. Thus, when the central bank tightened the order and discipline on the currency market, some lenders face temporary liquidity difficulties. The SBV affirmed that it will have measures to support such banks to handle a temporary liquidity shortage to ensure the safety of the entire system.