Interbank interest rates highest in 10 months

24-Dec-2016 Intellasia | Nhip Cau Dau Tu | 6:00 AM Print This Post

The updated bonds newsletter of Bao Viet Securities Company (BVSC) shows that interbank interest rates last week continued a strong upward trend, reaching its highest level within 10 recent months in all three types of terms.

Specifically, as per BVSC, the average interest rate rose 1.25 percent to 5.1 percent/year for overnight term and improved 1.17 percent to 5.11 percent/year for 1-week term. Meanwhile, the 2-week term interest rate increased 0.95 percent, reaching 5.07 percent/year.

As per SBV, the credit growth as of the end of November 2016 reached 15.8 percent while deposit growth was 15.2 percent. The sharp credit increase in the past month was not unexpected as the demand for loans in the economy generally swells at the end of the year.

This has made the banking system’s liquidity to be less abundant compared to Q3, thereby directly pushing up interbank interest rate to a new level. “We believe that inter-bank interest rates from now till the Lunar New Year will remain relatively high, ranging at 4.5-5 percent/year”, said analysts at BVSC.

*SBV net pumps more than 35 trillion dong to the market

Also as per BVSC, after seven months, the central bank has restarted OMO. Specifically, last week, more than 35.059 trillion dong was pumped through this channel while the amount of matured capital was more than 2.571 trillion dong. Therefore, 32.488 trillion dong was net injected through OMO by SBV.

Although the central bank stopped issuing bills in all kinds of terms, the amount of matured capital through this channel in the past week still reached 2.590 trillion dong. The aforementioned development showed that liquidity of the banking system at the present time was no longer redundant as in Q3, BVSC said.


Category: Finance, Vietnam

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