Banks can borrow gold from each other.

Instead of a complete ban, from August 23, the Governor of the State Bank will consider allowing gold lending and borrowing between some credit institutions in special cases to ensure system safety.

Late in the afternoon of August 23, the State Bank issued Circular No. 24 amending and supplementing Article 1 of Circular No. 11 dated April 29, 2011 of the Governor regulating the termination of capital mobilization and lending in gold by credit institutions.



From August 23, in special cases, to ensure operational safety, banks can borrow gold from each other but must have the approval of the State Bank. Photo: Le Chi

The new point of the revised circular is that the Governor of the State Bank will consider and decide on the implementation of gold borrowing and lending among a number of credit institutions in special cases, to ensure the safety of banking operations, instead of completely banning it as before.

Also according to this circular, the State Bank reaffirms its stance of prohibiting banks from implementing gold lending activities, and at the same time adds a requirement to immediately terminate gold lending activities for customers and other credit institutions (including credit contracts that have been signed but not yet disbursed or not fully disbursed).

In addition, the Circular also emphasizes that from August 23, commercial banks are not allowed to deposit gold at other credit institutions; are not allowed to carry out trust, investment and other forms of credit provision in gold.

Previously, according to Circular No. 11, the State Bank required credit institutions to stop lending capital in gold from May 1, 2011. This move is the next step of the State Bank in the roadmap to restore order in the market.

According to vnexpress - NT