Vietnam Bank News

Vietnam Bank Directory

Trade ETHUSD, Bitcoin and Cryptocurrencies

BUY & SELL ETHUSD | View ETHUSD News & Updates


Buy Sell ETHUSD, 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.

Central bank eyes repeat interbank market loans   2010-03-19 - VietNamNet, TBKTVN, TBKTSG, DTCK

The State Bank of Vietnam (SBV) has announced that it will inspect credit institutions that have a proportion of capital mobilized from the interbank market higher than 20 percent compared to capital mobilized from the public.

 

 

SBV Governor Nguyen Van Giau has ordered inspections of the credit institutions with high proportions of borrowing on the interbank market.

 

The interbank market is where banks borrow capital from each other to cover temporary liquidity problems. In theory, the proportion of capital mobilized from market 2 (the interbank market) is lower than that of market 1 (from the public). SBV does not want commercial banks to mobilize capital from market 2 to push up credit.

 

Giau told Thoi Bao Kinh Te Saigon that this is just a regular inspection tour that SBV makes to ensure the safety of banks and the banking system and not a special inspection of law violations. The inspection will be carried out with no discrimination as it the scale of the banks.

 

A deputy general director of a joint stock bank stated that some banks have abused the capital mobilized through the interbank market, borrowing capital to re-lend to businesses and individuals. “This is the reason behind the inspection,” he claimed.

 

He added that if SBV tightens the rules of operation on the interbank market, many banks that now get fat profits from lending on the market will suffer.

 

Currently, banks still find it difficult to mobilize public capital, reasoning the low ceiling deposit interest rates. Bankers believe that the 10.5 percent rate is the biggest barrier limiting capital flow.  Most banks offer the same deposit interest rate of 10.49 percent for all kinds of deposits, both short and long-term.

 

Commercial banks have often urged SBV to remove the deposit interest rate ceiling as it did with the lending interest rate ceiling.

 

Opinions still vary about whether or not to remove the ceiling. Le Duc Thuy, Chair of the National Finance Supervisory Council, in a recent interview with VnExpress also maintained that high-ranking officials have been aware of the need to remove the ceiling on short-term loans and also the 10.5 percent ceiling on deposits as well.

 

Tran Hoang Ngan, member of the National Advisory Council for Monetary Policy, wrote an article that stated the removal of the 10.5 percent deposit interest rate ceiling at this moment may make the monetary market chaotic, because Vietnam’s market has not been stable.


Other Banking News

Vietnam central banker lauds ‘brave’ response to economic crisis   2010-02-20

Banks still saying no to real estate credit   2010-01-22

Banks still collecting fee, despite SBV warnings   2010-01-18

Bank to issue 15m convertible bonds   2010-01-10

Banking review for 2009   2009-12-24

As banks close their door, borrowers have to seek usurers   2009-12-22

VNBA rejects Vietnam Credit’s bank ratings   2009-12-14

Vietnam banks face shortage of funds on gold, dollar   2009-11-25

Banks fear foreign currency capital shortage   2009-11-19

Vietnam banks have hard time attracting deposits   2009-11-16

Online banking growing in Vietnam   2009-10-27

HSBC Insurance increases stake in Bao Viet Holdings   2009-10-25

Banks still trying to lure more capital   2009-10-21

Citigroup opens Vietnam retail bank as wealth expands   2009-10-13