Go Back   ManagementParadise.com | Management & Business Education Learning Platform Upload / Download Banking and Insurance Projects and Notes > Security management and portfolio management

Banks providing help to stock market ! is it fair?

Discuss Banks providing help to stock market ! is it fair? within the Security management and portfolio management forums, part of the Upload / Download Banking and Insurance Projects and Notes category; It’s wrong for the stock market to depend on short-term funds from banks and measures will be taken to help ...

Reply

 

Thread Tools Display Modes
Banks providing help to stock market ! is it fair?
Old
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
 
sunandaC
Management Paradise Guru
 
Status: Offline
Posts: 6,680
Join Date: Jul 2010
Banks providing help to stock market ! is it fair? - August 16th, 2011

It’s wrong for the stock market to depend on short-term funds from banks and measures will be taken to help it attract capital on its own, State Bank of Vietnam Governor Nguyen Van Binh said.

The banking sector is only a short-term monetary market while the stock market is a capital source for the long term. As a result, banks cannot keep providing funds for the stock market, the governor said.

It’s unreasonable that banks become the main capital source for the stock market, Binh said in an interview in Dau Tu Chung Khoan (Securities Investment) magazine Friday.

Vietnam’s stock market has been struggling this year, with the main VN-Index falling 21 percent. Tightened credit policies have been blamed for the problem.

Binh said local banks tried to boost lending in previous years, causing credit growth to stay high at 30-40 percent, he said.

“As capital demand was high, banks had to attract deposits at all costs, pushing interest rates to very high levels and turning the banking system into a place for capital speculation,” Binh said.

“The banking sector is fundamentally wrong when it attracts all the capital in the economy, leaving nothing for the stock market,” he said, adding this is why the stock market has depended on monetary policies.

The governor, who took the position late July, said it was necessary to put the financial market in order.

“There will be measures to control credit growth so that banks will not have to raise funds at all costs. People will consider whether to deposit their money in banks to keep it safe, or to invest it in the capital market,” Binh said.

“The stock market will receive more funds and it will ease pressure on the banking system,” he added.


is stock market dependence at times of crises valid or correct? what do u feel
Advertisements

Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
banks, fair, market, providing, stock
Related to Banks providing help to stock market ! is it fair?
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
Details of Education Fair & Career Fair ankitbs College Fests / Workshops / Seminars 1 July 1st, 2015 06:30 PM
RECENT STOCK MARKET PERFORMANCE OF COMMERCIAL BANKS IN INDIA kaushik_80 Econometrics 22 September 20th, 2010 04:14 PM
The Foreign Interchange Market Is Different From The Stock Market by sas_artikels Savio Cabral Articles !! 0 August 14th, 2009 12:02 AM
stock market Jigar Pobari Final 100 Mark Project 10 August 6th, 2009 09:18 PM
A sagging economy and a weak job market are providing a boost to B ... - BusinessWeek Maya Raichura Articles !! 0 August 27th, 2008 06:00 PM
 


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.



Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.