Vietcombank raises most of capital from interbank market

Most of Vietcombank’s deposits are raised from the inter-bank market as the listed lender find it hard to attract deposits from the public on the State Bank of Vietnam (SBV)’s cap of dong and dollar deposit interest rates.

Most of Vietcombank’s deposits are raised from the inter-bank market as the listed lender find it hard to attract deposits from the public on the State Bank of Vietnam (SBV)’s cap of dong and dollar deposit interest rates, said Nguyen Hoa Binh, Vietcombank’s CEO.

Vietcombank strictly followed the SBV’s requirement to cap deposit interest rates at 14% p.a. for the dong and 2% p.a. for dollars, causing deposits from the public to decline for both dong and dollars, Binh pointed out.

Meanwhile, the listed bank has been a “big boy” in the inter-bank market that support liquidity for other lenders, he added.

As at early June, Vietcombank’s total assets edged up 6% from the end of 2010, in which deposits only rose 5% compared to the year-target of20% (or VND 249.984 trillion) in 2011 – Stoxplus.com

Tags: Vietcombank, Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jul 2 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