tailieunhanh - Dissertation abstracts: Liquidity management in monetary policy of the State Bank of Vietnam

Research will focus on the basic theory in terms of liquidity management of the central bank, the status of liquidity to execute the monetary policy of the central bank by forecasting method from currency balance sheet and propose management solution on liquidity of the central bank monetary policy. | 1 EXECUTIVE SUMMARY 1. THE NEEDS OF PROJECT Liquidity is available capital to meet the financial obligations of credit institutions CIs or banks. Capital is to meet the requirements of central bank reserves and compulsory excess to perform its payment obligations to customers with the state budget dealing with partners pay debt to the central bank. The banks will maintain liquidity in two forms in the funds deposited at the central bank and credit institutions. The excess liquidity is the highest portion of liquid banks will determine the proportion of money kept in bank or deposited at the central bank based on payment demand. Thus the liquidity kept in the central bank include the required reserve deposits and a part of excess reserves to meet the needs of payment. The central bank manages the deposited liquidity by setting the regulation and policy system building the rules of intervention dominating the transaction volume of liquidity in currency markets to adjust liquidity status in the interbank market dominating the behavior of balance adjustment between deposited liquidity and fund in bank to ensure its proper operation thereby affecting market interest rates in order to achieve the ultimate goal of the monetary policy. To execute the liquidity management central bank needs to forecast liquidity status in the market determine the value needed to intervene and propose the solutions to adjust liquidity status in the market to achieve the goal of monetary policy execution. Depending on the nation with the characteristics of political institutions the stage of economic development as well as the effectiveness in monetary policy operation of central bank the impact of each element that causes the supply and demand of liquidity at the central bank as well as the prediction and control of single component in central bank liquidity also differ. The State Bank of Vietnam is gradually improving the management of liquidity such as complete forecasting methods provide