The Governor of State Bank of Vietnam (SBV) issued Official Letter No. 539 requesting credit institutions and branches of foreign banks to report on the operations with other banks to address problems in the inter-bank market.
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Credit institutions and branches of foreign banks (except the People’s Credit Funds) have been requested to report on lending, deposit and loan activities with other credit institutions. The SBV has also required them report on bond investments. The time limit to send the reports is February 8.
Credit institutions and branches of foreign banks must take full responsibility for the accuracy and completeness of the information reported to the SBV.
According to experts, the SBV's request is aimed at heightening the transparency of all transactions between banks.
In the last six months of 2011, public concern was raised over banking issues, including the increase of bad loans between banks.
According to the SBV, on February 4, the average interest rate for inter-bank loans for a term three month reduced from 13.88% to 9.5% from a year ago. This is the lowest rate recorded since October 8, 2010.
The transactions recorded on February 4 were also reduced, amounting to VND8,744 billion (USD416million) in comparison to over VND30,000 billion (USD1,427million) on February 2. Overnight transactions reached over VND5,000billion (USD238million) accounted for 60% of all transactions.