Interbank interest rate dips
Source: 17-MAY-2008 Intellasia | Tuoi Tre
May 17, 2008 - 7:00:00 AM The interbank interest rate between May 14 and 15 was tending to decline gradually from 22-24% par annum down to 19% pa, particularly the overnight interest rate stood at 20% pa after the State Bank of Vietnam announced that it is discussing measures to abolish ceiling deposit rate.

As the ceiling deposit rate of 12% pa for the dong and 6% pa for the US dollar is abolished, banks that now have to borrow capital from the interbank market with a high interest rate can increase deposit rates from residents and enterprises. At the moment, these banks can only pay the highest deposit rate of 12% pa while borrowing interbank loans at 19-20% pa.