Commercial banks now cashed up

Commercial bank liquidity has improved dramatically since the State Bank of Viet Nam injected a heavy volume of capital at reasonable interest rates into the Open Market Operation, OMO, in July.

The volume of valuable paper trading remained at about VND32-56 trillion (US$1.64-2.87 billion) from July to August.

It even climbed to VND110 trillion ($5.64 billion) in late June.

But the volume had fallen sevenfold to VND7.72 trillion ($395.79 million) as of August 20.

"The reduction was very surprising," Thang Long Securities said in a report issued last week.

"It reflects the improvement in bank liquidity."

To be updated

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