Reports of the Maritime Bank’s economic research division showed that interest rates of loans in dong reduced 0.25-0.50 percentage points in all terms last week to 1.58 per cent for overnight loans, 1.73 per cent for one-week loans, 2.13 per cent for two-week loans and 3.70 per cent for one-month loans. This is different from the previous years when the interest rates often rose significantly few weeks ahead of Tet, which saw rising demand for capital for shopping and other payments. For example, ahead of Tet last year, inter-bank rates surpassed 2 per cent for overnight and one-week loans. The past week also saw a growing investment in G-bonds as investors bought all VND3.5 trillion (US$154.18 million), of which VND2 trillion were 10-year G-bonds and VND1.5 trillion were 15-year G-bonds. Yields of the bonds dropped sharply by 0.52-0.70 percentage points to 4.38 per cent for 10-year G-bonds and 4.5 per cent for 15-year G-bonds. Source VNA
The State Bank of Vietnam last week began sharply reducing the supply of money through open market operations (OMO), after the money deposited by commercial banks at the central bank had increased considerably. As a result, the interbank market has become more bustling with more transactions, which have also pushed interest rates up. Some banks still need to borrow short-term capital to serve their business, while some other banks, which have temporary idle capital, need to lend money. Currently, the interest rates in the interbank market are at 17-17.5% per annum, higher than the 15-15.5% levels last week. The State…... [read more]
A gargantuan new interest rate was set on February 19: banks had to borrow on the inter-bank market at an interest rate of 43% per annum. Analysts say the inter-bank market is are fiercely competing to attract VND capital. When the last transaction on February 19 was finalized, a bank officer checked his messages and discovered that 18 of 31 were related to VND interest rates. The final message, according to him, said the overnight interest rate on the interbank market was at 43%. The officer related that the rate is unprecedented, never before seen in the history of Vietnam's…... [read more]
Hong Phuc Rates for overnight, one-week and two-week loans in the Vietnam dong currency have edged down but stay at over 5% per year. Rates for overnight to one-week tenors have slid by 18 basis points to 5.05% and 5.07% respectively while two-week loans have seen their interest rate down by two basis points to 5.23% per year. Banks on January 19 morning offered rates of 4.7-4.9% for short-term tenors while long-term rates stayed high, at 5.1-5.2%. The State Bank of Vietnam (SBV) last week net withdrew a large sum of money after seven straight weeks of net injection via…... [read more]
Hanoi Times - After nearly one month of consideration, the State Bank of Vietnam finally decided to set the ceiling interest rate for the interbank market - it must not be higher than 150% of the basic interest rate announced by the State Bank. As such, the ceiling interbank market's interest rate is 21% for now, as the basic interest rate the central bank announced for August is 14% per annum. In theory, the new decision will support small banks, which will be able to seek capital at interest rates affordable for them. Moreover, the scenario of the interest rate…... [read more]
The statistics show that the interbank market had a very peaceful week on March 19-23. However, experts still can see big problems. On March 19-23, 2012, the State Bank withdrew 13.8 trillion dong through the open market operation (OMO). However, the interbank market was still calm with low interest rates and good liquidity. The interest rates on the interbank market have been described as “very good” but not good to everybody. Some banks have abundant capital, others thirsty for capital The demand for capital on the market was low, while big banks seemed to have enough capital and to spare.…... [read more]
