Do not delay closing state gold

  After much delay, this time, the central bank has shown a determination to force the banks to settle the status of gold before 06/30/2013.

 

    The banks have all been on the 80% payment balance mobilize capital in gold

    

    At the Conference on banking duties last 6 months of 2013, the Governor of the State Bank of Vietnam Nguyen Van Binh said the central bank did not delay play golden state, the balance of deposits banks must strictly abide gold regulations, they will be treated seriously.


    Back in time, on 10.03.2000, the Governor of the SBV issued Decision No. 432/2000/QD-NHNN allows licensed banks operating foreign exchange term capital mobilization in gold and USD secured by gold values ​​of residents. The credit can also be used to mobilize capital in gold to gold loans to customers in order to meet the capital requirements for production - business and service life or be converted up to 30% funding gold into cash to lend in USD.


    It is fair to say that the first time, this decision helped to mobilize a significant gold resource of people to serve economic development. However, the later years, especially after the global economic crisis of 2008, gold prices fluctuate constantly and rapidly increasing trend. This makes mobilization and lending gold becomes risky, especially with the CIs to convert gold into cash to lend.


    Therefore, since 2010, the central bank started tightening the mobilization and lending in gold by credit institutions to issue Circular 22/2010/TT-NHNN only require banks raise capital through the issuance of gold valuable papers, gold loans to manufacturing (processing) and sales of gold jewelry (not lending to manufacturing - trading gold). In particular, the banks are not converted into gold deposits in VND and other forms of money. The capital has transformed gold into money previously to be reduced and finalize no later than 30/6/2011.


    Tightened further, on 29/4/2011, the SBV issued Circular 11/2011/TT-NHNN to require banks are not made of gold loans to customers and banks (including the credit contracts signed but not yet disbursed or fully disbursed). Holders should not mobilize capital in gold, except in cases where the short-term gold certificates for gold to pay the customer's request when the gold collection and insufficient funds exist to pay. However, this activity must also ends on 1/5/2012.


    The banks will not be converted into gold deposits in cash. For the amount of gold has been previously converted into cash to finalize the latest on 30/6/2011. But then, as domestic gold market volatility, banks facing liquidity difficulties in gold, so SB has extended gold mobilization through short-term certificates of credit to 25/11 / 2012 and the third was on 30/06/2013.


    30/06/2013 imminent deadline. Market dynamics are observed by the banks and the central bank. However, reports of central bank gold market has been made, said late last month, thanks to accelerating the termination of mobilizing and lending gold, the beginning of the month 5/2013, banks have been on the consolidated balance sheet 80% balance to mobilize capital in gold.


    The Governor said: "SB continue to manage the gold market on the basis of results achieved. The state also raised banks and lending gold to quickly finalize. Previously, the central bank could not make drastic as liquidity constraints, this good liquidity and reasonable interest rates banks could help close the state, especially central bank gold sales also ongoing to support the banks. "


    Yesterday, 20/06/2013, SBV auction held 33th gold for sale 26,000 volumes of (1 ton gold) and was successful auctions with full bid amount of gold sold out. Thus, after the auction has 33 839 200 gold, more than 32 tons are supplied to the market.


    "I said to. SBV will take drastic measures to deal with this. Suggest banks mobilize gold remaining to abide by the regulations seriously, "central bank Governor Nguyen Van Binh said.