The central bank has no plans to bail out the nation’s banking system, State Bank of Vietnam Governor Nguyen Van Giau said on December 14, countering rumours that had begun spreading on the stock market that banks were facing liquidity crisis.

The rumour began to circulate when commercial banks recently increased deposit interest rates in an effort to attract more capital.

Whispers began to be heard on the stock market that the central bank would inject as much as 20 trillion VND (1.05 billion USD) into the banking system, sending banking shares soaring and causing the VN-Index to end the day up on Dec. 14, snapping a run of declining sessions.

“The central bank is pursuing a stable monetary policy and trying to curb credit growth. No money pumping. No higher interest rates,” said Giau emphatically. “The central bank encourages a competitive market among banks, which can attract capital and lend it out based on their own capacity, he told the English-language daily Vietnam News.”/.