Capital mobilisation in HCM City up over 14%

Capital mobilization by banks in Ho Chi Minh City reached over VND2,082 trillion (US$88.1 billion) as of May, up 0.83% from the previous month and 14.47% year on year, said the municipal branch of the State Bank of Vietnam (SBV) on June 7.

capital mobilisation in hcm city up over 14% hinh 0

Of the amount, commercial joint stock banks accounted for 50.85%, up 9.08% from the same month last year. Saving deposits made up 49.81% of the total, marking a 7.54% yearly increase. 

As of early May, total outstanding loans surpassed VND1,855 trillion, up 16.82% annually and 5.37% monthly. Commercial joint stock banks accounted for over VND972.2 trillion, or 52.39% of the total and up 12.76% year-on-year. 

May was the second consecutive month the SBV had pumped money into the banking system. The inter-bank rate was more stable in early May but increased in the latter half of the month, especially for short-term loans. 

Experts said there is no need to worry about the system’s liquidity, but close watch should be kept on new factors such as trade deficit and the tendency of capital withdrawal by foreign investors. 

The USD Index went up 7% to 94.8 point, pushing up the US dollar price to over VND22,880, 0.64% higher than the level in the beginning of the year. 

However, the foreign exchange is still cushioned by several factors, including a record foreign reserve of US$64 billion. 

The SBV adjusted the daily reference exchange rate down to VND22,566 on June 1, thus pushing the US dollar price down to VND22,840. 

According to experts, it is necessary to closely keep track of banking liquidity, trade deficit and indirect capital flows.

VNA

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