In the first six months of this year, eight listed banks on the stock market have deposited total 285.267 trillion dong at other credit institutions, rising 25.7 percent over the same period last year. The mutual deposits were prohibited from September 1.
The State Bank of Vietnam (SBV)’s Circular No 21, effective from September 1, stipulated that banks are only allowed to lend and borrow from each other and disallowed to deposit and receive deposits from each other unless that amount of money is to serve the payment purpose.
Before the circular takes effect, the mutual deposit activities amongst banks were still very animated.
According to the revised semi-annual consolidated fiscal statement in 2012 of eight listed banks on both two bourses namely Hochiminh Stock Exchange (HoSE) and Hanoi Stock Exchange (HNX), the total deposits of these eight banks at other credit institutions were 285.267 trillion dong, down 18.5 percent from December 31, 2011 but rising 25.7 percent over the same period last year.
The mutual lending activities, as usual, was much lower than the deposits but still increased over eight times year-on-year, to reach more than 44.173 trillion dong. In comparison with the end of last year, the total outstanding loans increased 11%.
Meanwhile, the deposit and lending of customers (not banks) of these eight listed banks reached 954.319 trillion dong and 869.045 trillion dong, rising 25 percent and 8.5 percent from early this year respectively. In comparison with the same period last year, the total deposits of these eight listed banks from the economy increased 25 percent and lending to the economy increased 18%.
In their portfolio of lending to other credit institutions, Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) topped the list when disbursing an amount of up to 35.914 trillion dong, rising nearly 8.2 percent from December 31, 2011. As of June 30, 2011, Vietcombank’s total disbursement reached only 1.916 trillion dong, about 18 times lower than the bank’s amount of lending.
Asia Commercial Joint Stock Bank (ACB) also lent other credit institutions totalling 1.285 trillion dong as of December 31, 2011 but till June 30, 2012, the figure was 312 billion dong.
Meanwhile, Saigon-Hanoi Commercial Joint Stock Bank (SHB) and Nam Viet Joint Stock Co (coded NVB) did not lend to other credit institutions, according to the released fiscal statements.
At the deposits at other credit institutions, Vietcombank also took the leading place with 70.586 trillion dong, down 1.7 percent from December 31, 2011.
Standing at the second place was Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG) with nearly 62 trillion dong.
According to the fiscal report, ACB posted a deposit of nearly 56 trillion dong at other credit institutions while at the end of last year, this lender ranked at the first place with nearly 80 trillion dong.
Although lending other credit institutions with a little amount, in the deposits of other credit institutions, Vietnam Export Import Commercial JS Bank (Eximbank-EIB) received the biggest volume of deposits from other credit institutions in the first half of this year with nearly 62 trillion dong. The amount of deposits of other credit institutions at Eximbank increased 50 percent from the same period last year and decreased nearly 6 percent from December 31, 2011.
Conversely, in H1/2012, VietinBank saw the biggest fall in volume of deposits from other credit institutions (by 55%). Meanwhile, if calculating according to percentage, NaviBank posted the strongest movement in terms of deposit balance from other credit institutions.
Particularly, the deposits of other credit institutions at Navibank decreased six times within six months (from June 30, 2011 to Decembe 31, 2011), from 4.265 trillion dong to 703 billion dong and continued to increase more 4.1 times after the first six months of this year.
Together with deposits, Vietcombank also borrowed from other credit institutions with the biggest volume. Conversely, NaviBank and SHB continued not to appear in the borrowing item from other credit institutions, according to the revised semi-annual consolidated fiscal statement in 2012.
VietinBank posted the biggest lending volume to customers when disbursing more than 284.662 trillion dong in the first half of this year. This figure decreased nearly 8.772 trillion dong from the end of last year and increased 21.395 trillion dong over June 30, 2011.
The total deposits of customers at VietinBank also saw the highest volume against other banks, reaching 253.374 trillion dong. Last year, VietinBank also topped this list with 257.136 trillion dong.
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