State Audit reports on central bank’s 2011 performance VNTimes

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The State Bank of Vietnam has adhered to the Government'sinstructions in 2011 to implementing a tight monetary policy, adjustinginterest rates in line with market signals and keeping exchange ratesstable.

The online newspaper VnEconomy quoted the State Audit's report on the State Bank's performance in 2011.

However, the State Audit said the central bank management must be heldresponsible for lending growth failing to reach its target and baddebts continuing to rise since 2007.

The State Bank's inspection and supervision on refinancing loans was also referred to as "untimely" or "incomplete".

The State Audit said that some commercial banks borrowing refinancingloans had violated regulations on capital adequacy but the central bankdid not warn, prevent and handle the matter quickly enough.

Asfor commercial banks, the State Audit said most had followed legalregulations on lending and credit growth. However, some banks hadgathered and finished legal and economic documents before lending wasincomplete. Control before, during and after lending was not strict.-VNA

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