Banks are not allowed to lend money for the purchase of gold.
To ensure the stability of the domestic gold market, on October 8th, the State Bank of Vietnam issued another new regulation.
|
This circular also states that the State Bank of Vietnam stipulates a risk weighting of up to 250% for loans secured by gold.
The Circular takes effect from October 10, 2011. For credit contracts signed before October 10, credit institutions and borrowers shall continue to implement the signed agreements until the principal and interest are fully repaid.
According to the State Bank of Vietnam, the issuance of the aforementioned Circular aims to further control lending activities for gold purchases and loans secured by gold, contributing to the stability of the gold and foreign exchange markets.
According to Vietnam+
