Commercial banks lifting gold mobilisation rate of below 1pct to around 2.5pct p.a.

October has seen a range of commercial banks lifting gold mobilisation rate of below 1pct to around 2.5pct p.a.

At Saigon Commercial Bank (SCB), it has been pushed up to 1.8pct for one-month term, 2.2pct for two-month term and 2.5pct for six-month and nine-month terms which is the highest as yet.

Also, the interest rate for short term certificate of deposit in gold has climbed to 2pct-2.2pct at Viet A Bank and HD Bank. Gold mobilisation rate at Viet A Bank is standing at 2pct at most for three-month term since October 4.

Likewise, three-month, six-month and nine-month gold deposits have all been raised to 2.2pct from 2pct as in early September at Vietnam Tin Nghia Bank. Eximbank, meanwhile, has 1.5pct fixed for all terms.

Earlier, gold mobilisation and lending, transferring capital in gold into capital in dong have been restricted under the Circular 11 which has taken effective since May 2011. Gold mobilisation rates were then slashed to below 1pct, even at 0.01 percent at many commercial banks.

The gold mobilisation rate hikes this time has attracted a great deal of attention from investors particularly on anticipation that the central bank is likely to cap gold mobilisation rate following keeping a lid on dong interest rate.

Recently, the central bank together with representatives from commercial bank s and large gold enterprises has held a meeting on measures to address the market’s existing shortcomings. It is suggested that several lenders are allowed to open overseas gold trading accounts so as to narrow the demand supply demand that has been hitting gold prices. – Vnexpress.net

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by VBN on Oct 7 2011. Filed under Banking-Finance, Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry