Savings interest rates are stable due to positive liquidity

22-Jul-2016 Intellasia | Thoi Bao Ngan Hang | 6:00 AM Print This Post

The reduction of the interbank market in the last two weeks showed that the liquidity of the system is still in a fairly positive status. This is the favourable condition for commercial banks to maintain stability of their mobilisation interest rates.

Report of Bao Viet Securities Company (BVSC) week 27 (from July 11th 2016 to July 15th 2016) showed that the interbank interest rates in the period simultaneously dropped by 0.40 percent across the terms. Specifically, the average interbank rates fell by 0.41 percent to 1.05 percent per annum on overnight term, while one-week and two-week interbank rates dropped by respectively 0.435 percent and 0.41 percent to 1.31 percent per annum and 1.57 percent per annum, respectively.

However, BVSC also said that if the credit sharply accelerates in the coming months (by an average of 1.5 to two percent per month), banks must be prepared to raise mobilisation interest rates to ensure sufficient funds for the credit growth target.

Another sign of the positive system liquidity is that SBV continued to net withdraw nearly 10 trillion dong via bill channel during the week. According to BVSC, during the period, SBV continued to regulate the dong supply and demand via the issuance of short-term bills. The release of 14-day bills reached a total value of 9.999 trillion dong while no bills matured during the week.

Concerning the Open Market Operations (OMO), BVSC said that the market continued to be gloomy in eight consecutive weeks with no net injection or withdrawal conducted via this channel.


Category: Finance, Vietnam

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