SBV requirements of inter-bank lending and depositing transactions

With the aim of making the interbank market operate well and harmonize the liquidity among credit institutions and foreign bank branches, and promptly monitoring the movements of the market, the SBV Governor has required credit institutions, foreign bank branches, and SBV municipal and provincial branches to conduct the following tasks:

For credit institutions and foreign bank branches: (i) applying the VND mobilizing and lending rates among credit institutions and foreign bank branches in the inter-bank market in accordance with the Government’s direction in Resolution No.01/NQ-CP dated March 1, 2012 and the SBV’ direction on the interest rate reduction, without causing any upheaval of interest rates in the inter-bank transactions (both lending and borrowing) from the present point of time until the effective date of Circular No. 21 / 2012/TT-NHNN issued on June 18, 2012; and (ii) complying with the reporting regime stipulated in Circular No.21/2010/TT-NHNN (the credit and deposit relationships among credit institutions and foreign bank branches – daily reports).

For SBV municipal and provincial branches: supervising the law and SBV regulation compliance in terms of the VND mobilizing lending rates in the inter-bank market  among credit institutions and foreign bank branches in their locations and deal with all the violations under their jurisdiction, and making recommendations, if any, to the SBV  in order to stabilize the money market.