Will the shortcomings on interbank be resolved?
The State Bank has just requested credit institutions to report information on mutual borrowing relationships to re-evaluate the interbank market.
A notable request when the interbank market has been in turmoil recently.
On February 6, 2012, the State Bank issued Document No. 539/NHNN-DBTKTT requesting credit institutions and foreign bank branches to report certain information on lending relationships, deposits and bond investments of other credit institutions.
Accordingly, to assess the interbank market activities, the Governor of the State Bank requires credit institutions and foreign bank branches (except for grassroots people's credit funds) to report certain information on lending, depositing, borrowing, and receiving deposits with other credit institutions and investing in bonds and valuable papers issued by other credit institutions.
Credit institutions and foreign bank branches must submit reports to the State Bank by February 8, 2012.
The above requirement of the State Bank may be a periodic reporting activity. However, this is also a notable requirement when the interbank market has been in turmoil recently.
In the second half of 2011, the interbank market began to see the emergence of a mechanism requiring guarantees and mortgages in borrowing activities between members; there was a phenomenon of some banks borrowing in this market but delaying repayment when overdue, or the inadequacies in simultaneous debts that have attracted public attention in recent times...
The above shortcomings cause disruption and limit the function of the interbank market in its role of regulating capital for the system. And perhaps after collecting data through the above request, the State Bank will evaluate and take measures to make the interbank market operate better.
According to: Vneconom
