Interbank rates continue to bottom in the last two weeks

07-Oct-2017 Intellasia | BizLIVE | 6:00 AM Print This Post

The interbank rates generally tended to level off and stay at low level in the last two weeks, reaching 0.68 percentage points (pp.) on overnight term, 0.82pp on one-week term, 0.96 pp. on two-week term, and 1.48 pp. on one-month term.

The market liquidity of commercial banks remained abundant although the State Bank of Vietnam (SBV) did not strongly inject capital into the system via Open Market Operation (OMO) channel.

According to experts of MB Securities Company (MBS), the interbank interest rate level will continue to be low and will tend to level off at bottom level in the next weeks before rising again in the end of the year, when the demand for credit increases.

Despite sending many messages about policy easing, SBV did not inject much cash into the system via OMO channel. The increase of money supply and credit in the first nine months of the year was fairly positive, reaching respectively 9.59 percent and 11.02 percent.

The maintenance of USD at low level and the return of trade deficit in Vietnam in August and September has reduced the pressure on VND. In the first three quarters, Vietnam only recorded a trade deficit of 442 million USD.

The deposit interest rates of banks in the recent time have remained fairly stable with no major changes in the last two weeks. The mobilisation growth in the first nine months of the year reached 10.08 percent, lower than the 11.76 percent recorded in the same period of 2016, making it very difficult to lower interest rates, if SBV does not significantly inject money into the system.

According to MBS, in general, the interest rates will slightly increase in the end of the year due to the high demand for credit growth and the needs to shift short-term funds to long-terms of commercial banks.

The deposit rates in VND are currently ranging from 0.8-1 percent for non-term deposits and one-month term, 4.5-5.4 percent per annum for deposits with terms from one month to less than six months, 5.4-6.5 percent per annum for deposits with terms from six months to less than 12 months, and 6.4-7.2 percent per annum for deposits with terms from 12 months and more. The USD deposit rate of banks is 0 percent per annum for deposits of individuals and organisations.

Meanwhile, the lending rates are popular at 6-6.5 percent per annum for priority areas on short terms, while state-owned banks apply medium and long-term lending rates at 9-10 percent per annum for priority areas. Normal business and production activities enjoy lending rates of 6.8-9 percent per annum on short terms and 9.3-11 percent per annum on medium and long terms.

For the group of good customers with healthy and transparent financial situation, short-term lending rates are from 4-5 percent per annum. The USD lending rates are popular at 2.8-4.7 percent per annum on short terms, and 4.7-6.0 percent per annum on medium and long terms.

 


Category: Finance, Vietnam

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