HCMC - The State Bank of Vietnam is working on synchronous measures in an earnest effort to reduce interest rates so as to ease difficulties for business, said the central bank’s governor.
Central bank prepares rate cut
By Hai Ly - The Saigon Times Daily
HCMC - The State Bank of Vietnam is working on synchronous measures in an earnest effort to reduce interest rates so as to ease difficulties for business, said the central bank’s governor.
“Departments and divisions of the State Bank of Vietnam are working laboriously to compile new legal documents or revise prevailing ones before launching new measures to cut interest rates, stabilize the foreign exchange rate, and control the gold market,” said Governor Nguyen Van Binh.
He revealed that the central bank would complete the legal corridor for synchronous measures, and “next week the central bank would meet with 12 major banks to discuss the measures. Banks are those entities that implement such rules, so we want to listen to them,” Binh said.
Legal documents being reviewed are those relating to capital mobilization on the interbank market so as to regulate the capital flow between the interbank market and the public mobilization market.
Early next month, the central bank will organize a national seminar on applying these measures with the participation of all banks. After the seminar, the measures will apply, he said.
The governor emphasized two main issues. The first one is that all policies and solutions must be clear, transparent, and predictable so that even enterprises and residents may access them.
The other one is that policies must be feasible and practical.
“If three out of 100 banks cannot enforce the law, we can blame those banks. But if all banks and credit institutions cannot comply with the new law, the policy makers must be punishable,” Binh explained.