Wednesday, March 20th 02:19 PM IST

Vietnam banks struggle to find enough gold to payback customers

# Vietnam gold  # SBV  # SJC  # gold monopoly  

State Bank of Vietnam has finally decided that commercial banks must stop mobilizing and lending in gold by June 2013.

HANOI(BullionStreet): As the deadline of June 2013 fast approaching, commercial banks in Vietnam struggling to gather enough gold to pay back to depositors.

State Bank of Vietnam has finally decided that commercial banks must stop mobilizing and lending in gold by June 2013.

SBV allowed banks to trade non-SJC gold for them to gather enough gold even after the new regulation on bullion gold trade take effects on January 10, 2013.

Observers say the volume of non-SJC gold kept by commercial banks has reached thousands of taels. Especially, the banks have been collecting the non-SJC gold, not made by them, to convert for SJC gold.

This will not only help banks get more SJC gold, but also bring a fat profit to banks, because they can buy non-SJC gold at very low prices.

It is estimated that the price gap between SJC and non-SJC gold is as high as VND3-4 million.

Under the new regulation, SJC is the only national gold brand, while the State holds the monopoly of making and trading bullion gold, the equipment has been left idle.

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