Interbank trading volume down, bank liquidity increases

October 07, 2010 | 10:30

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HA NOI - Total trading volume in Vietnamese dong was VND65.93 trillion (US$3.38 billion) during the final week last month, down 29.55 per cent against the previous week, according to a new report issued by the State Bank of Viet Nam.

The dramatic decrease in interbank trading signals that liquidity at banks has improved after the central bank loosened capital regulations through the amendment of Circular No13 taking last Friday.

During the past two months, the trading volume hovered around VND90-100 trillion ($4.61-5.12 billion).

Average interbank trading increased slightly by 0.13-0.19 per cent for three month loans. Interbank trading has increased on average by 6.77-8.52 per cent per year. Interest rates for loans that exceed three months were down 0.06-0.48 per cent to about 10.12-10.55 per cent.

During the same period, total trading volume in the US dollar was also 15.37 per cent to $2.52 billion. Interest rates for the dollar loans were about 0.33-1.43 per cent per year.

As of September 27, credit growth in the banking industry was 19.27 per cent. Total loan allocation for property was VND218 trillion ($11.18 billion), up 18 per cent, loans for securities were up 19.8 per cent to reach VND15 trillion ($769.23 million), loans for consumers increased by 19.7 per cent to VND151 trillion ($7.74 billion).

Loans for agricultural and rural development and small and medium enterprises were up about 19-20 per cent.

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