Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade BCHUSD, Bitcoin and Cryptocurrencies

BUY & SELL BCHUSD | View BCHUSD News & Updates


Buy Sell BCHUSD, Bitcoin and Cryptocurrencies

Prime Minister Orders Tight Lid on Credit   2008-05-21 - vnanet.vn

Prime Minister Nguyen Tan Dung on May 20 ordered the State Bank of Vietnam to continue keeping a tight lid on the growth of credit while monitoring the market in a parallel attempt to tame inflation.

Dung told the State Bank of Vietnam to manage interest rates and to finalize a new interest rate regulating mechanism to replace ceiling rates. The new rates must be in line with existing laws and with reality, with the aim of gradually stabilizing market rates.

The central bank was asked to create favorable conditions for commercial banks to borrow on the inter-bank market and to join open market operations in order to ensure strong liquidity.

Total growth in credit was targeted at about 30% per year.

The central bank was also tasked to closely monitor the business of commercial banks in terms of capital adequacy ratio, risk management, real estate and stock lending in order to put the brakes on unstable, overheated development.

The State Bank will control the increase of charter capital by commercial banks to make sure that each bank is growing sustainably.

Dung also reaffirmed that, in the coming months, the central bank would manage exchange rates flexibly within a daily trading band, and that the Vietnamese dong would continue to be limited to movements within plus-or-minus 2% against the US dollar.

The central bank will strictly control foreign currency demand and balance of payments in order to respond to any problem in a timely manner.

The State Bank, together with the General Statistics Office, the National Financial Monitoring Council, Deposit Insurance of Vietnam and Vietnam Banks Association, would also set up an information system and forecasting mechanism to help adjust policies in a timely fashion.



Other news

Robusta coffee declines on Vietnam supply concerns   2008-05-21

Nothing seems to be able to stop the slide   2008-05-21

Vietnamese, US firms cooperate in e-trade   2008-05-21

Fruit sales rise on higher quality   2008-05-21

Rice exporters hope to sell beyond ban   2008-05-21

High interest rates may make banks ‘unprofitable’   2008-05-21

Capital jumping from stock market to banks   2008-05-21

Vietnam may limit future rice exports   2008-05-20

Index halves to below 450 points   2008-05-20

Bridge over Dong Nai River to be built   2008-05-19

Horticulture village planned in HCM City   2008-05-19

Eximbank approved to sell 25% stake to foreign investors   2008-05-19

Vietnam builders halt projects to avoid bankruptcy   2008-05-19

Savers to reap reward from central bank decision   2008-05-19