Finance body warns on inflation, interest
Finance body warns on inflation, interest
The National Financial Supervisory Committee proposed more attention be paid to the monetary market, warning in a recent report to the Government that the economy had seen alarming signs when it came to interest rates and inflation.
The report said that since the beginning of September, the mobilising interest rate for long-term deposits in some banks exceeded the cap set by the State Bank of Viet Nam (SBV) to reach 12-13 per cent, demonstrating that several banks faced difficulties in liquidity.
Financial and banking expert Nguyen Dai Lai said that some banks increased mobilising interest rate because their liquidity was low.
The interbank monetary transaction was also slowing down with a 60 per cent decrease in total volume in September, forcing the SBV to raise more flexible policies to support bank liquidity even though the difficulty was just temporary.
According to the committee, the Government should focus on accelerating the interbank monetary market to solve banks' liquidity problems. The SBV should intervene only when the market failed to regulate itself.
Measures to prevent excessive interest rates were also needed, according to the report, which pointed out that the short-term measures, together with efforts to solve bad debts and restructure banks and credit institutions, would help tackle the current problems of the monetary market.
Meanwhile, possible impacts of the SBV's policy to stop the gold mobilisation and loan of commercial banks from November 21 must be studied carefully while gold-related policies such as the rights of gold owners and keepers should be made clear.
Price control was particularly important this month after the highest consumer price index (CPI) since May 2011 was recorded last month, surging 2.2 per cent from August.
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