Directive No. 06/2007/CT-NHNN of November 02, 2007, on the assurance of the liquidity and control of the total payment means
THE STATE BANK OF VIETNAM
SOCIALIST REPUBLIC OF VIETNAM
Independence Freedom Happiness
Hanoi, November 02, 2007
ON THE ASSURANCE OF THE LIQUIDITY AND CONTROL OF THE TOTAL PAYMENT MEANS
In the recent months, with a view to implementing the guidance of the Prime Minister at the Directive No.18/2007/CT-TTg dated 01 August 2007 on some urgent measures to restrain the increase in market prices and other documents guiding the implementation of this Directive; the State Bank of Vietnam has managed an active and flexible monetary, credit and exchange rate policy in order to withdraw money from circulation, control the growth rate of credit and total payment means, not to allow the excessive increase or devaluation of Vietnamese dong; credit institutions shall perform an efficient business operation, support and implement monetary, credit and foreign exchange solutions issued by the State Bank of Vietnam. However, the inflation moves complicatedly, available capital of credit institutions is likely to decline which makes it difficult to control the total payment means.
With a view to implementing the Directive No.23/2007/CT-TTg dated 31 October 2007 of the Prime Minister on strengthening the implementation of solutions on the price management, market stabilization in late months of 2007 to serve the Lunar New Year 2008 and to ensure the liquidity, control of the total payment means, making contribution to the stabilization of price and promoting the economic growth in the late months of 2007 and early month of 2008; the Governor of the State Bank would like to request credit institutions and units of the State Bank of Vietnam to implement several measures as follows:
1. For credit institutions:
a. Examining the performance of business targets in combination with making assessment of, forecasting the socio-economic development, domestic and oversea monetary financial markets in order to implement solutions to ensure a prudential and efficient business operation.
b. Intensifying the available capital management, taking initiative of balancing the capital sources and use of capital, ensuring a safe liquidity to fully satisfy customers demand for payment, especially the expense for salary, bonus at the end of the year; maintaining prudential ratios, particularly the liquidity ratio provided for in the Regulation on prudential ratios in the activities of credit institutions issued in conjunction with the Decision No.457/2005/QD-NHNN dated 19 April 2005 of the Governor of the State Bank and the Decision No.03/2007/QD-NHNN dated 19 January 2007 of the Governor of the State Bank on the amendment, supplement of several articles of the Regulation on prudential ratios in the activities of credit institutions issued in conjunction with the Decision No.457/2005/QD-NHNN.
c. Closely controlling the changes in business items; making the balance of capital to engage in the open market operation and seriously implementing related monetary, credit and foreign exchange solutions upon the request of the State Bank of Vietnam.