Vietnam’s plan to stop gold borrowing at local banks has sparked heated debate within the country. Some banking insiders believe the new policy could cause banks to lose a huge capital source that would serve economic development in a country that has private ownership of some 500 tons of gold valued at $17 billion.
The country has more than 10 banks involved in gold borrowing and lending activities, accounting for 30% of the total volume privately held by the public. Earlier this year, the government closed local gold exchanges to ease gold speculation.
More on gold trading in Vietnam