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Investors turn their backs on securities loans
Previously, banks said ‘no’ to investors who came to ask for loans for securities deals. Now is the investors’ turn to say ‘no’ to banks when banks are offering loans.
It is understandable why banks are trying to push up loaning to fund securities investment deals, which are considered very risky. There have been signs that the usable capital of banks is in excess, while they are still far away from the ceiling 30% credit growth rate after a long period of tightening up on credit.
Euro Capital on September 17 announced it would team up with the Bank for Investment and Development of Vietnam (BIDV) to provide loans for securities investors with the stocks being the mortgage. The list of approved stock items will be announced by Euro Capital every day.
In early September, FPT Securities Company announced cooperation with BIDV to provide securities loans. The maximum value of a loan is VND50mil, the interest rate is 20% per annum and the maximum loan term is three months.
According to Dau tu chung khoan, there are 10 securities companies that provide securities loans under the forms of direct loaning or repo contracts and with strict conditions. Previously, half of the share items listed on both Hanoi and HCM City could be mortgaged for the loans. Currently, the figure is just 100 of the 300 listed share items.
However, investors prove to be indifferent to the loans, and not because of high interest rates.
Dang Quang Son, Head of the Customers’ Service Division under Euro Capital Securities Company, said that investors do not really care about interest rates; the more important thing for them is opportunities. Meanwhile, investors cannot see opportunities at this moment while the stock market remains gloomy.
Nguyen Van Dung, Brokerage Director of FPT Securities, shared the same view, saying that previously, investors accepted interest rates as high as 6% per annum as they believed they could get profit on investments.
Regarding the business efficiency of the securities loaning, an official from BIDV said that this kind of loaning proves to be more feasible than loans for other sectors. The real estate market, for example, has low liquidity, which makes it more difficult for banks to collect debts.
Le Xuan Nghia, Head of the Banking Development Strategy Department under the State Bank of Vietnam, said that with the current monetary policies, banks can offer many kinds of loans, including consumer and real estate credit.
VNN
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