14:59 | 14/06/2018 Economy
Capital mobilization by banks in Ho Chi Minh City reached over 2,082 trillion VND (US$88.1 billion) as of May, up 0.83 percent from the previous month and 14.47 percent year on year, said the municipal branch of the State Bank of Vietnam (SBV) on June 7.
|Illustrative image - Source: VNA|
Of the amount, commercial joint stock banks accounted for 50.85 percent, up 9.08 percent from the same month last year. Saving deposits made up 49.81 percent of the total, marking a 7.54 percent yearly increase.
As of early May, total outstanding loans surpassed 1,855 trillion VND, up 16.82 percent annually and 5.37 percent monthly. Commercial joint stock banks accounted for over 972.2 trillion VND, or 52.39 percent of the total and up 12.76 percent 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 percent to 94.8 point, pushing up the US dollar price to over 22,880 VND, 0.64 percent 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 22,566 VND on June 1, thus pushing the US dollar price down to 22,840 VND.
According to experts, it is necessary to closely keep track of banking liquidity, trade deficit and indirect capital flows.