Credit institutions close gold deposit accounts

Credit institutions close gold deposit accounts

Commercial banks all closed their gold accounts by the June 30 deadline, except for one or two with insignificant outstanding gold deposits, according to the State Bank of Viet Nam (SBV).

Previously, some banks asked the SBV to delay the deadline to the end of this year. Though the SBV declined the proposal, it said banks could seek support to resolve any issues.

The SBV originally set the deadline as December 30 last year, but increasing pressure from banks and a growing gold shortage caused the central bank to push it back to June 30 and organise auctions to increase supply.

From March to June, it organised 37 auctions for nearly 37 tonnes of gold.

At an auction today, another 40,000 taels of gold bars will go on sale.

Industry insiders said that the move was quite surprising, as banks had already closed their gold accounts.

However, SBV deputy governor Le Minh Hung said the central bank would still maintain its regulatory role and planned to hold more auctions in case market demand rose.

vietnamnews