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Several banks to be inspected on interbank loans
Date: 3/19/2010 10:51:19 AM
State Bank (SBV) has announced its inspection of credit institutions which has capital mobilization rate on the interbank market is greater than 20% of the capital mobilized from the residental market.

Some banks are raising capital from the interbank market than from the residential market. Photo: Le Toan

Interbank market is the market where banks borrow from each other to offset liquidity. SBV requires inspection agencies, bank monitors building inspection plan for credit organizations that have such rate to direct implementation nationwide.


State Bank Governor Nguyen Van Giau said to Saigon Economic Times Online that this is the policy of the banks to regularly check for banks, to ensure safety for both bank and system. The inspection will be conducted not distinguish between large banks and small banks. He also stressed that this is only a normal inspection of the SBV, not by banks violating the regulations.


 Deputy General Director of a joint-stock commercial banks said the interbank market is an array of private business banking, where banks borrow and lend each other to ensure liquidity as well as to enjoy the difference deviation. Essentially, this market is not negative but a few banks had abused the capital market to provide loans so SBV has to inspect to know well the situation, he said.


He also said that if SBV actually squeeze out activity provisions on the interbank market in the near future, banks that gains much profit from this market will be affected.

(Source:thesaigonetimes.vn)
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