Official Dispatch No. 9551/NHNN-CSTT dated December 08, 2010 of the State Bank of Vietnam on the implementation of the Directive No. 2164/CT-TTg

With a view to implementing the Directive No.2164/CT-TTg dated 30 November 2010 of the Prime Minister on continuing to strengthen the production activity, ensuring the balance of the supply and demand of goods, services, stabilizing prices, market in the occasion of the Lunar New Year and in the first quarter of 2011; the Governor of the State Bank hereby requires credit institutions, State Bank s branches in provinces, cities and units at the Head Office of the State Bank as follows:

1. For credit institutions:

- To implement, on a timely and efficiently, solutions provided for in point 3 at the Directive No.04/CT-NHNN dated 4 November 2010 of the Governor of the State Bank on implementation of monetary, credit and banking solutions, making contribution to stabilizing price and macro-economics.

- To strictly implement provisions on prudential ratios in activities of credit institutions stipulated in the Circular No.13/2010/TT-NHNN dated 20 May 2010 and the Circular No.19/2010/TT-NHNN dated 27 September 2010.

- To maintain the available capital for ensuring the adequate payment for deposits of the State Treasury, Social Insurance of Vietnam, economic organizations and people in December 2010 and during the Lunar New Year festival.

- To concentrate capital resources together with strongly adjusting the credit structure so as to raise the capital amount and proportion of loans to agriculture, rural areas and exports, reserving goods to serve the Lunar New Year festival, providing loan to surmount the consequences of natural disaster, flooding and effective costs of production of small and medium enterprises.

- To implement mobilization and lending interest rates in conformity with provisions of applicable laws, guidelines of the Government and agreements between Members of Vietnam Banks Association.

2. For State Bank s branches in provinces, cities:

- To implement, on a timely and efficiently, solutions provided for in point 2 at the Directive No.04/CT-NHNN dated 4 November 2010 of the Governor of the State Bank on implementation of monetary, credit and banking solutions, making contribution to stabilizing price and macro-economics.

- To supervise the performance of interest rates of mobilization and lending in VND by credit institutions (credit institution s branches) in the local area, in line with provisions of applicable laws, guideline of the Government and agreements between Members of Vietnam Banks Association.

- To ask credit institutions (credit institution s branches) to concentrate their mobilized capital resources in the local area and other capital resources, together with strongly adjusting the credit structure so as to raise the capital amount and proportion of loans to agriculture, rural areas and exports, reserving goods to serve the Lunar New Year festival, providing loan to surmount the consequences of natural disaster, flooding and effective costs of production.

- To report the executive level and local authorities, closely coordinating with concerned departments, branches in the local area to inspect, deal with any cases of speculation, withholding, illegal dealing in gold, foreign currency that cause market disorder.

- To coordinate with concerned departments, branches in the local area to promote the information and communication about the guideline, solution of running the monetary policies issued by the Government and the State Bank, the monetary situation and banking activity in the local area; timely dealing with public opinion, information that is not accurate about monetary and banking situation in the local area.

3. For units at the Head Office of the State Bank, within the assigned functions, duties, to perform following solutions:

- To implement, on a timely and efficiently, solutions provided for in point 1 at the Directive No.04/CT-NHNN dated 4 November 2010 of the Governor of the State Bank on implementation of monetary, credit and banking solutions, making contribution to stabilizing price and macro-economics.

- To manage the money supplied through the open market, refinance operations, combining with flexibly managing other instruments of monetary policies so as to support the liquidity of credit institutions, control the growth rate of total means of payment, credit and interest rates in the currency market at an appropriate level. In any case where there is an extraordinary change in the currency market, provisions on business interest rate of the credit institutions shall be applied in conformity with Article 12 of the Law on the State Bank of Vietnam and Article 91 of the Law on Credit Institutions.

- To closely follow up and forecast the situation of international payment balance, inflow - outflow of foreign currency so as to catch up with the foreign currency demand and supply in the market; to intervene in the sale of foreign currency at an appropriate level for demands of importing essential commodities and realizing other measures to stabilize the foreign exchange market.

- To closely follow up and forecast the changes of international gold prices, domestic gold supply and demand so as to allow importing gold at a reasonable level for stabilizing the gold price; to supervise credit institutions as to the implementation of the Circular No. 22/2010/TT-NHNN dated 20 October 2010 of the Governor of the State Bank providing for the mobilization and provision of loans in gold by credit institutions, timely dealing with violations; preparing and implementing Schemes on gold market management in line with the Resolution of the National Assembly No. 51/2010/QH12 dated 8 November 2010 promulgating the plan on socio-economic development in 2011 and direction of the Prime Minister.

- To coordinate with functional units of the Ministry of Information and Communications, bodies in charge of communications and pressing agencies to promote the information and communications about the management of monetary policies and banking activity in conformity with the direction of the Prime Minister.