8:04:19 AM | 5/14/2012
The State Bank of Vietnam (SBV) sent the Directive No. 05/CT-NHNN to credit institutions and foreign bank branches, requiring correct implementation of regulations on gold mobilisation, keeping and lending.
The SBV’s Circular 11 on termination of gold mobilisation and lending by credit institutions took effect on May 2, 2012 but banks dodged the regulation by the income-bearing service called “gold safekeeping."
The central bank requested banks to provide the “gold safekeeping” in accordance with the laws: Customers must pay safekeeping fees and banks shall not pay interests on that gold.
Currently, banks mainly mobilise SJC bullions in long term, mainly 12, 15 and 18 months in the name of safekeeping. Interest rates range from 2 percent to 3 percent a year. A bank even applies 4.6 percent rate - the highest - to 18-month term safekeeping.
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