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Circular 38/2012/TT-NHNN on controlling the gold balance of credit institutions

Circular 38/2012/TT-NHNN on Controlling the gold balance of credit institutions

Circular 38/2012/TT-NHNN details regulations on on the gold balance of credit institutions which gold balance arising from gold purchasing and selling activities of credit institutions at the end of the day shall not exceed 2% of the owner’s capital.

This balance is calculated on basis of the buying and selling gold material for immediate delivery (including commitments to purchase, sell) and shall be converted into Vietnam dong at the conversion price of gold status.

Owner’s capital is capital of the preceding month of the reporting period.

Another limitation for the credit institutions is that they are not allowed to maintain negative the gold balance.

In special case, the credit institution has to seek approval from the Bank Governor.

This circular takes effect from January 10th 2013.

 

Tuan Nguyen

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