5:02:55 PM | 8/10/2008
The State Bank of Vietnam’s Monetary Policy Department has said that Vietnam banks have withdrawn their overseas loans and deposited part of which in Singaporean and Hong Kong banks for easier use amid the U.S. financial crisis, Thoi Bao Kinh Te said on October 6.
The department also said operations of local banks and monetary market is at secure levels and see no upheavals because there’s no direct business link with investmetn and banks that went bankruptcy in the U.S., the paper said.
Two 100 per cent-foreign invested banks, branches of foreign banks and joint venture banks are operating safely, the department added.
Governor of the State Bank of Vietnam Nguyen Van Giau earlier said the Wall Street will not cause domino effects on Vietnam’s financial and banking sector and liquidity of local banks and the country’s forex reserves are at secure levels and not a single credit or bank has business with investment corporations and banks that collapsed recently in the U.S.
Currently, Vietnam’s forex reserves are estimated at nearly US$22 billion. A liquidity surplus of local banks reaches VND40 trillion someday after SBV increased interest rates of reserves to 5 per cent. (Vietnam Economic Times)
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