Tougher supervision on banks' transparency
15-MAY-2008 Intellasia | Thoi Bao Kinh Te Vietnam
May 15, 2008 - 7:00:00 AM
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State Bank of Vietnam's governor yesterday May 13 issued the Document No 1255/NHNN-TD requiring commercial banks, SBV branches to carry out some assignments relating to the ensuring of banking transparency.
Particularly, commercial banks must balance capital, actively join the open market specifications at SBV and other capital mobilisation methods.
In case banks really have to face difficulties in available capital but do not have standard value papers to join the open market, they need to propose SBV's capital re-supply. According to the governor, banks are disallowed to use money sourced from SBV's capital re-supply programme to expand credit activity.
At present, SBV re-supplies capital to ensure banks' transparency under two methods of secured lending by mortgaging valuable papers or credit applications.
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