SBV tells commercial banks to suspend their gold-holding services.—Photo phunutoday

HA NOI (Biz Hub) — The State Bank of Vietnam (SBV) has asked commercial banks to suspend their gold-holding services for customers until it issues instructions - likely to be as far away as August.

Two days ago, it was reported that some banks holding customers' gold in storage were using it for their own activities.

This led the SBV to intervene. It has ordered that commercial banks must now have SBV permission to run storage services.

Like most commercial banks, on Wednesday, the Asia Commercial Bank stopped the practice. However, banks can still keep gold deposited before the SBV intervened.

Local newspapers report the developments are part of SBV steps to control the gold market in Viet Nam, which is fluctuating wildly.

Meanwhile a representative of SBV said the bank was drafting a circular with detailed conditions and procedures on running the storage service.

The draft is expected to be completed in August.— VNS