Cialis
Cialis

Banks use raised gold as collateral to borrow interbank capital

As the interbank interest rate went up to 22% per annum (p.a.), many banks are using raised gold as collateral to borrow capital from other banks with the interest rate of only 14-15%, the local newspaper Nguoi Lao Dong (The Labourer) reported on Friday October 14.
On October 13, some banks said that they have to borrow capital on interbank market with the interest rate of 18-19% p.a. for 1-week term and it is up to 22% p.a. for 1-month term.

High interest rates were attributable to some ailing banks that are in need of capital to compensate for its weak liquidity via borrowing capital on interbank market. Meanwhile, big banks take this advantage to push up the interest rates.

The interest rate for certificate of deposit (C/Ds) in gold has been also pushed up after some banks were allowed to sell raised gold and trade account gold. However, at banks disallowable to sell raised gold and trade account gold, the interest rate of C/Ds in gold was raised to 2.7% p.a. while the common benchmark is only 1.7% p.a.

According to banks, the raised gold volume may be used as collateral to borrow capital at the other banks with the interest rate of only 14-15% p.a. instead of accessing interbank loans with higher interest rate amidst strong decline of deposits from people. – Source: Vietbiz24.com

Tags: , ,

Posted by VBN on Oct 15 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

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

  • Pakistan: Gold price decreased by Rs 100 to Rs 54,350 per tola
  • Thailand gold prices for December 17
  • Gold prices may climb to $2000 levels in the first half of 2012 – Jeff Nichols
  • Rob McEwen still stands pat on his $5,000 per ounce gold price prediction
  • Gold bullion bulls seek new trading range
  • December shaping up to be an ugly month for gold
  • China’s total gold demand would grow to reach 750 tons this year
  • Gold stocks remain some of the best stocks in this stock market

RSS Silver prices

  • Gold,silver set for lower weekly finish again
  • Silver powder and flakes revenue to hit $300 million by 2016
  • A shot at silver investment will certainly pay off
  • Fortuna Silver Mines added to S&P/TSX Composite
  • Top 10 biggest silver mines in the world (updated)
  • Silver prices fell by Rs 409 to Rs 53,195 per kg in futures trade today
  • Bulls and bears in gold and silver price confrontation
  • Silver ready to finish a dramatic year

Sponsored

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