Major banks to resume gold keeping services

Wednesday, Oct 16, 2013 12:57

The State Bank of Viet Nam allows four banks to run gold storage services on Tuesday.— Photo Tigiavang             
HA NOI (Biz Hub) — The State Bank of Vietnam (SBV) on Tuesday approved Techcombank, NamAbank, DongA and EximBank to continue running gold storage services.

The commercial banks were forced to halt their services due to a special request from the SBV on July 3, which cited the banks had not been issued licences for the activities.

With the SBV's permission, the four banks will now restore the barred services in securing and safe leasing gold in line with their operational licenses.

The SBV requires commercial banks not to use bullion deposited by customers for other purposes, particularly lending or investment activities. Banks are also unable to authorize separate institutions or individuals to hold gold deposits on their behalf.

A few hundred tonnes of gold are estimated to be kept by local people, a practice that often exposes them to volatile market risks. — VNS

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