Cialis
Cialis

Bank deposits diverting to other investment channels

The deposit rate ceiling has diverted cash flows from the banking system to other investment channels, such as securities, gold, and others, VietBiz24.com reported on Friday.

After 10 days of execution of interest rate ceiling, banks said the money was being withdrawn from the banking system.

 

 

According to VietBiz24.com, on September 8 and 9, two joint-stock commercial banks based in Hanoi suffered a withdrawal of 1.2 trillion dong by customers.

 

The amounts withdrawn from banks are being poured into other investment channels, such as gold, real estate and securities.

 

 

Saigon Economic Times quoted a leader of a Hanoi-based securities firm as saying that the amount of new money investors has charged into their trading accounts has recently increased from three trillion to five trillion dong with each type of medium and large sized companies.

 

The second shift is savings from smaller banks flowing to larger banks. This move took place in accordance with the intention of the State Bank. Because banks with unfair competition all have reached the credit growth of 20%, and still had non-production lending growth remain high. Therefore, although even raised more capital, they cannot lend out more, or can only lend a small portion.

 

 

In the interbank market, interest rates in these days have been higher the rates from residents. In particular, on September 20, the interest rate on the interbank market for the one-week period stood at 14.5 – 15% per year, for the 1-month period from 15.5 to 16% per year.

 

The capital source from population and the interbank market slowly being narrowed will force banks think of the refinance from the State Bank. Now, the re-financing will come with tougher conditions by the central bank.

 

 

In contrast to small banks, large banks are still having more opportunities and room for credit growth. According to Dang Van Thanh, chairman of Sacombank, on August 31, the credit growth of this bank was only 6.4% compared to last year. Also, Vietcombank only posted the credit growth of less than 10% in the first half of 2011. The credit growth of Agribank and BIDV was even lower in the same period.

 

The reduction in interest rates is an opportunity for the aforementioned larger banks to open credits. However, banks also need time to break even the capital.

 

 

According to calculations of the VPBank, banks need three months to lower input interest rates so as to be able to lend with the interest rate from 17 to 19% / year for all customers. Currently, the deposit rates of most banks are still around 18% per year due to mobilised capital with higher interest rates previously still there.-Vietbiz24.com

Tags: , , , , ,

Posted by quynhdn on Sep 25 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

You must be logged in to post a comment Login

Stay informed everyday

Subscribe to free RSS and email updates from Vietnam Business News

Subscribe via Email Subscribe in a Reader Follow us on Twitter Connect on Facebook

RSS Gold price

  • Gold prices inched down in thin trade on Thursday
  • ZKB ETF gold holdings up 0.5% on week
  • Gold ends lower, logs sixth loss in eight sessions
  • Gold up by Rs 1200 per tola
  • Vietnam gold price added up VND0.22 million a tael on Thursday morning
  • Gold price in Hong Kong went down 148 HK dollars per tael on Thursday
  • Thailand gold prices for December 22
  • Gold drops as banks’ rush for ECB lending program strengthens the dollar

RSS Silver prices

  • Gold, silver lower as banks flock to borrow ECB money
  • Rally in gold, silver face ebbing tide; no repeat of 2008?
  • Hecla Mining’s Lucky Friday to resume output in late Feb
  • Gold and silver report – “greater expectations”
  • China’s stimulus talk and buying silver on the copper dip
  • BNP Paribas forecasted Silver to rise by more than 20% in 2012
  • European credit crunch: Another excuse for silver downdraft?
  • Silver moved up by Rs 173 to Rs 53,660 per kg at the futures trading today

Sponsored

  • Looking for an overseas forex broker?
  • Trading Point now offering Forex Malaysia and FX Japan with Forex, CFD's and Futures.

накрутка пф заказать можно ли купить диплом https://diplomix-asx.com/kupit-diplom-sssr купить диплом нового образца купить диплом в ростове-на-дону https://aurus-diploms.com/geography/diplom-v-moskve.html https://gosznac-diplom24.com/kupit-diplom-medicinskogo-uchilishha куплю диплом https://premialnie-diplom24.com/купить-диплом-с-занесением-в-реестр/ купить аттестат школы https://lands-diplomix.com/attestat-9-klassov.html https://frees-diplom.com/otzyvy-klientov https://diploman-dok.com/kupit-diplom-omsk купить диплом ссср https://radiplomy.com/kupit-diplom-onlajn