Vietnam Bank News

Vietnam Bank Directory

Trade XRPUSD, Bitcoin and Cryptocurrencies

BUY & SELL XRPUSD | View XRPUSD News & Updates


Buy Sell XRPUSD, Bitcoin and Cryptocurrencies

Banking News & Financial Services News
Get the latest banking news headlines from Vietnammarkets.com. Find in-depth Vietnam coverage from banking, investing, financial, stock market, and more abou Vietnam banking system, bank for industry and trade, Vietnam banking sector.

Banks hike gold rates to lure deposits   2009-05-11 - Nguoi Lao Dong

 
 
Clerks at a gold store await customers in Hanoi. Banks are trying to mobilize gold deposits as they now lack the bullion for lending to gold stores, analysts say.  
Commercial banks are trying to attract gold deposits by raising interest rates, offering cash bonuses, and launching other promotion programs as recent gold price hikes prompt depositors to withdraw and sell their gold.

 

Analysts said banks need to raise gold deposits as they now lack the bullion needed for lending. Gold shops are the main borrowers of bullion, while most depositors are residents or speculators, bankers say.

VietA Bank increased its yearly interest rates by 0.4 percent to 0.7 percent for gold deposits last month. The Ho Chi Minh City-based lender now pays 2.5 percent per year for one-month deposits, 3.4 percent for three-month deposits and 3.6 percent for six-month deposits.

HCMC-based Eximbank is paying cash bonuses of VND25,000 per tael (one tael is equal to 1.2 ounces) for six-month deposits.

The Southern Bank, also based in HCMC, launched a three-month promotion program called “Deposit gold, win gold” early last month through a lottery scheme. The program also offers an interest rate bonus of 0.1 percent per year for deposits of between 10 taels and 50 taels, and 0.2 percent for deposits of 50 taels or more.

Nguyen Ngoc Que Chi, director of Sacombank Jewelry, said speculators prefer short-term deposits so that they can easily withdraw the precious metal for selling when the prices increase.

Saigon Jewelry Holding Company (SJC)’s gold prices closed last week at VND19.94 million (US$1,129) a tael in Ho Chi Minh City and VND19.96 million in Hanoi. The bullion has risen 12 percent so far this year.

An official from HD Bank, who wished not to be named, said many gold shops borrow the bullion for trading but pay it back before the maturity date if gold prices fall.

Bui Hong Tam, director of the Vietnam Jewelry Corporation, said as gold imports are now banned, banks lack the precious metal and are mobilizing deposits to meet gold traders’ demand.

The central bank had banned gold imports last May to restrict exports, but later let select banks export it in February and March.

Gold shops, especially those lacking financial strength to buy large quantities of the precious metal, not only borrow the bullion from banks at fixed interest rates but also from residents at negotiated rates.


Other Banking News

BIDV in partnership with Hong Kong financial company   2009-05-10

Interest rates ‘have hit a floor,’ may rise, ratings agency says   2009-05-09

Deutsche Bank’s HCMC branch to raise capital to $24 million   2009-05-09

Vietcombank plans rights issue for small shareholders only   2009-05-07

Bonds fall, dong gains on increase in bank deposit rates   2009-05-07

Commercial banks rushing to push interest rates over 9%   2009-05-05

Banks hike interest on dong deposits to raise funds   2009-05-05

Consumer credit: Lenders and borrowers the proverbial two ships   2009-05-03

Commercial banks need deposit capital   2009-05-02

Vietcombank set to list by September   2009-04-29

Vietnam cuts rate on export credit to 2.9 percent   2009-04-28

Vietcombank becomes partner of Foreign Investment Agency   2009-04-23

Eximbank to raise capital to VND8.8 trillion this year   2009-04-21

Banks set low business targets to ease pressure   2009-04-21