Vietnam Stock Players Seek Bank Loans to Boost Investment
Vietnamese stock investors are now seeking securities loans from local commercial banks to boost investment and maximize profit amid strong rallies of the market over the last two months.
Almost all securities companies have joined hands with banks to provide capital for their clients.
Au Viet Securities Co (AVSC), BETA Securities Co (BSI) and Danang Securities Co (DNSC) have cooperated with several big banks to offer securities-backed loans and advance payment for share sales with high limit.
Asia Commercial Bank (ACB) had lent a total of VND800 billion to securities investments by mid-May, ACB’s General Director Ly Xuan Hai said, adding that the bank would continue promoting securities-backed lending as this is a kind of potential credit.
The securities used as collaterals, however, include some large symbols in the official market and stocks with high liquidity in the informal floor such as Eximbank, Military Bank, Vietcombank, DongA Bank.
Banks are now allowed to lend up to 20 per cent of their registered capital into securities. However, the State Bank of Vietnam is mulling to tighten securities lending activities to safeguard the banking system, which is stirring up concern among brokers and players.
Currently, the banking system has more than VND10 trillion worth of outstanding loans for securities investment. (Vietstock News)
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