Vietcombank's transaction office (Photo: Vietcombank)Hanoi (VNA) - TheState Treasury deposited more than 238.49 trillion VND (10.5 billion USD) infive commercial banks by the end of last year, up 3.3 times againstJanuary.
Dien dan doanh nghiep (Business Forum) newspaper reported that these banksare Vietcombank, BIDV, VietinBank, MBBank and VIB.
Vietcombank received the largest proportion of the deposits, at nearly 165.1trillion VND, three times higher than the end of September. The StateTreasury’s deposits at Vietcombank included a recent State divestment deal fromSabeco, worth 5 billion USD, or more than 113 trillion VND.
The Treasury also deposited nearly 11.1 trillion VND in Vietinbank by the endof last year.
According to experts, inter-bank interest rates plunged because of massivecapital flows into the Vietnamese market and difficulties in public investmentdisbursements, prompting the State Treasury to transfer large deposits from theState Bank of Vietnam to commercial banks last year.
In contrast to previous years when liquidity was typically short at the end ofthe year due to the rise in payment needs, the liquidity of the banking systemat the end of 2017 remained abundant, partly thanks to the State funds, theexperts said.
Saigon Securities Incorporation (SSI) said the good liquidity at the bankingsystem last year was primarily because of the reasonably controlled creditgrowth (18.1 percent) and secondly due to the slow disbursement of public investment,which was why a large amount of the State Treasury’s capital was deposited inthe five banks.
Moreover, the situation was also attributable to the surplus in the balance ofpayments, the high foreign exchange reserve and the increase in the domesticcurrency supply to the market from the SBV, SSI said.
Earlier in July last year, the Vietnam Institute for Economic and PolicyResearch also reported the State Treasury’s deposits in the banking system areconsidered the main reason for the high liquidity in the market.
“The slow disbursement of public investment helped increase the StateTreasury’s deposits in commercial banks, reducing pressure on interest rates,”it said.
With the abundant liquidity in the banking system, commercial banks last yearalso increased their investment in long-term bonds. Earlier, bonds with atenure of 30 years were mainly bought by insurance companies, but last year sawa drastic shift when banks bought nearly 15 trillion VND out of 28 trillion VNDworth of 30-year bonds.-VNA
Dien dan doanh nghiep (Business Forum) newspaper reported that these banksare Vietcombank, BIDV, VietinBank, MBBank and VIB.
Vietcombank received the largest proportion of the deposits, at nearly 165.1trillion VND, three times higher than the end of September. The StateTreasury’s deposits at Vietcombank included a recent State divestment deal fromSabeco, worth 5 billion USD, or more than 113 trillion VND.
The Treasury also deposited nearly 11.1 trillion VND in Vietinbank by the endof last year.
According to experts, inter-bank interest rates plunged because of massivecapital flows into the Vietnamese market and difficulties in public investmentdisbursements, prompting the State Treasury to transfer large deposits from theState Bank of Vietnam to commercial banks last year.
In contrast to previous years when liquidity was typically short at the end ofthe year due to the rise in payment needs, the liquidity of the banking systemat the end of 2017 remained abundant, partly thanks to the State funds, theexperts said.
Saigon Securities Incorporation (SSI) said the good liquidity at the bankingsystem last year was primarily because of the reasonably controlled creditgrowth (18.1 percent) and secondly due to the slow disbursement of public investment,which was why a large amount of the State Treasury’s capital was deposited inthe five banks.
Moreover, the situation was also attributable to the surplus in the balance ofpayments, the high foreign exchange reserve and the increase in the domesticcurrency supply to the market from the SBV, SSI said.
Earlier in July last year, the Vietnam Institute for Economic and PolicyResearch also reported the State Treasury’s deposits in the banking system areconsidered the main reason for the high liquidity in the market.
“The slow disbursement of public investment helped increase the StateTreasury’s deposits in commercial banks, reducing pressure on interest rates,”it said.
With the abundant liquidity in the banking system, commercial banks last yearalso increased their investment in long-term bonds. Earlier, bonds with atenure of 30 years were mainly bought by insurance companies, but last year sawa drastic shift when banks bought nearly 15 trillion VND out of 28 trillion VNDworth of 30-year bonds.-VNA
VNA
