SUMMARY Evaluating the impact of the factors in Available Capital Management on Monetary Policy Management of State Bank of Vietnam

Abstract

From State Bank’s perspective,
available capital includes required
reserve Deposit and the excess money
for payment purpose of Financial
Institutions. State Bank manages
the available capital at State Bank
by ebtablishing a framework system
based on building regulation for
intervention, dominating trading
volume of available capital in monetary
market adjusted the status of available
capital in interbank market, dominating
adjustment behavior on the balance
between available capital Deposit at
State Bank and Financial Institution’s
fund aimed to ensure daily operations.
As a result, impacting on market
interest rate to archive the final goal
of monetary policy. Thus, to manage
and regulate the status of available
capital, State Bank needs to evaluate
the impact level of all factors constitued
available capital, thereby providing the
reasonable intervention to the market
and dominating effectively to each
factor by understanding the behavior