HCM City’s total deposits in US dollar decrease 1.12pct as of Aug 30

As of August 30, 2011, the total deposits of HCM City-commercial banks have been estimated to have reached 857.7 trillion dong, up 1% from the end of last month and up 6.38% over the end of last year, according to the data from the State Bank of Vietnam (SBV)’s HCM City Branch.
Under which, total deposits in dong saw a rise of 8.89% whereas total deposits in US dollar decreased 1.12% from the end of last year.

The total outstanding loans of HCM City-based credit institutions as of August 30 were estimated at 753.4 trillion dong, up 0.7% from the end of July and up 6.26% over the end of last year, of which, loans in dong increased 1.24% and loans in US dollar surged 19.66% from the end of last year.

According to SBV’s HCM City branch, the difference between dong deposit rate and dollar saving rate (the gap is about 12% per annum) is the factor contributing to the contrary shift between total deposits in dong and US dollar.

In the long term, this shift will have important implications for the central bank’s monetary policies, switching from dollar deposit-lending relationship to dollar buying-selling one. But in the short term, the fall in foreign currency deposits amidst constantly increase on dollar outstanding loans will put pressures on the forex rate. – Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Aug 31 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