Capital Flows Shifted from Stock Market to Banks
Flows of idle capital from individuals in Ho Chi Minh City are moving from securities market to commercial banks, leading to a sharp credit growth in the city, said experts.
Since the beginning of this year, Ho Chi Minh City-based commercial banks raised VND377.5 trillion (US$23.6 billion) of deposits, up 65.7 per cent on year. Deposits in Vietnam dong increased 80 per cent on year.
Savings and capital raised from bills reached VND149.9 trillion, accounting for 39.7 per cent of total deposits, up 43.5 per cent from a year earlier.
As early July, outstanding loans of credit institutions in Ho Chi Minh City totaled VND291 trillion, up 48.4 per cent on year, 30.8 per cent of which are foreign currency loans.
In addition to the movement from stock market to banking market, the lenders in the city also increased deposits by hiking interest rate in foreign currencies, developing payment services and expanding operational network.
After booming in first three months, Vietnam stock market has turned grey in last some months. In July alone, shares on Ho Chi Minh City bourse fell 11.4 per cent, ended the month at 907.95 point. (VNA, VSE)
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