Vietnam Gold Lending Curbs Evoke Mixed Response
Source: Commodity Online (4/25/11)
"The State Bank of Vietnam has asked commercial banks to phase out gold lending and deposits."
Analysts said the move by State Bank of Vietnam (SBV) seeks to control the local gold market, ensuring safety in bank operations.
The new rule is an attempt to eliminate the role of gold as a means of payment in Vietnam, the central bank said. It noted that the government will, however, continue to recognize the right of citizens to have gold holdings.
The State Bank of Vietnam has asked commercial banks to cease lending gold in May and stop accepting gold deposits two years from now.