State Bank says no to ‘hot loans’ for 3 consecutive sessions

02-Jun-2017 Intellasia | Vneconomy | 6:00 AM Print This Post

On May 30, the interbank market and the open market operations (OMO) continued to reflect the favourable state of the system in recent time.

Following the trend which has been clearly shown in the last month, interest rates in dong in the interbank market fell sharply and came to a low level.

As per the analysis of Maritime Bank research division, on May 30th, the average interbank interest rate in dong continued to decrease by 0.08-0.32 percentage points in most terms, while the one-week term remained unchanged for 10th consecutive session.

Specifically, the overnight interest rate continued to fall to 2.42 percent, only equal to half of the “average” of around five percent per year at the end of Q1 and the beginning of Q2; the 1-week term remained at 4.08 percent per year compared to 3.06 percent for 2-week term and 3.52 percent for 1-month term.

With the recent sharp drop of interest rates in the interbank market, in OMO, the State Bank has almost no longer had to inject capital to support the system’s liquidity an activity that has lasted with large scale after the Traditional Lunar New Year.

Yesterday (May 30) marked the third consecutive session that the State Bank offered to bid one trillion dong on the mortgage channel with a term of seven days and there was no winning volume.

Also in the day, 796 billion dong matured. As a result, the State Bank net withdrew 796 billion dong, bringing down the circulation on the mortgage channel to 379 billion dong only.

 


Category: Finance

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