The State Bank of Vietnam (SBV) has issued a document requiring credit
institutions to strictly abide by the regulations for managing gold
trading.
According to Official Letter No.1889/NHNH-QLNH dated
March 21, credit institutions are not allowed to convert gold deposits
into Vietnamese dong or other forms of currency, nor can they use gold
deposits for mortgages, collateral or security for the payment of loans
from other credit institutions.
They are also not permitted to loan
their customers money to buy gold unless they receive permission from
the SBV Governor, who can approve loans to purchase gold for jewelry
production or processing.
Credit institutions must take back loans
in gold or convert the outstanding loan into Vietnamese dong, and they
cannot extend loans originally transacted in gold.
The SBV also
asked credit institutions to strictly obey the regulations on managing
assets, including keeping and storing gold for customers, and they must
publish their fees for storing gold deposits.
They should pay no
interest, fees or any type of return to the gold depositors, while the
depositors should be required to pay fees for the institution to store
their gold.-VNA