The HQs of the State Bank of Vietnam. Photo: doisongphapluat According to Saigon Securities Incorporate (SSI), the cash was pumped through the bill issue channel to meet the rising capital demands as Tet (Vietnamese Lunar New Year) approaches. The past week also saw the inter-bank rates inch up by 0.1 – 0.22 percentage points, pushing the overnight rate to 1.57 percent and the one-week rate to 1.65 percent. However, the one-month rate inched down by 0.05 percentage points to 3.4 percent. Despite the hike, inter-bank rates were still low compared to the same period in previous years. For example, ahead of Tet last year, the inter-bank rates surpassed 2 percent for overnight and one-week loans. Source: VNA
State Bank of Viet Nam (SBV) made a net cash injection of VND18 trillion (US$792 million) into the economy in the past week.According to Bao Viet Securities Co (BVSC), SBV pumped VND2.26 trillion through the open-market operations channel while issuing bills worth VND15.91 trillion to support liquidity of the banking system.The past week also saw the inter-bank rates increase by 0.2 percentage points to 0.35 percentage points for all terms, pushing the overnight rate to 1.01 per cent, the one-week rate to 1.23 per cent and the two-week rate to 1.49 per cent, according to reports from Saigon Securities Incorporate…... [read more]
State Bank of Viet Nam made a net cash injection of VND16 trillion (US$704.8 million) via open market operations in the past week to support liquidity of the banking system, Bao Viet Securities Co (BVSC) reported. BVSC reported that the amount doubled that of the previous week. The net cash injection, together with high inter-bank rate, showed that the liquidity of the banking system was not as good as the previous weeks, BVSC’s analysts said. Inter-bank rate last week increased by 0.15 per cent to 0.28 per cent per year for all terms, pushing the overnight rate to 4.7 per…... [read more]
Cash injections by Vietnam's central bank helped push down lending rates over the past week, and bankers said on Monday they expect them to fall further in anticipation of a possible end to a cap on deposit rates. Lending rates for medium- and long-term loans have come down to between 14 and 15 percent, Vietcombank's chief executive officer Nguyen Phuoc Thanh said. In recent weeks they had soared to around 20 percent at some banks. Thanh said cash injections via open market operations by the central bank were not a long-term way to lower lending rates, but helped banks manage…... [read more]
Central bank to keep pumping funds via OMO By Hong Phuc - The Saigon Times Daily HCMC - The central bank’s move to continuing injecting capital via open market operations (OMO) last week has partly removed concerns over liquidity among small banks that are set to lose big customers to larger lenders when Circular 30 comes into effect. Circular 30 issued by the State Bank of Vietnam (SBV) rules that a maximum interest rate of no more than 6% a year for call deposits or deposits in Vietnam dong with terms less than a month will be effective from Saturday.…... [read more]
The Hanoitimes - In a move to improve liquidity for banks, the State Bank of Vietnam in the first three days of this week pumped VND9 trillion to banks via open market operations (OMO). As a result, overnight interest rates on the market rose by one percentage point compared to before: between 16.5 percent -17 percent per year for one-week term, 17 percent - 18 percent for two weeks and 17.5 percent - 18.5 percent for one month.The central bank injected VND2 trillion, VND2 trillion and VND5 trillion on Monday, Tuesday and Wednesday respectively on the market. on Tuesday, there…... [read more]
