Interbank interest rates hit 3-year high

According to data from the Vietnam Interbank Market Research Association (VBA), the average interbank interest rate - where banks borrow and lend - on December 1 increased by 0.8 - 1.62 percentage points for most terms of one month or less, except for the two-week term.

Overnight interbank interest rates rose to 7% - a three-year high - amid pressure on year-end credit capital.

Specifically, overnight interest rates - the term that accounts for the majority of transaction value between banks - increased to 7%, the highest since November 2022. Interest rates for other terms such as one week are 7.3%, two weeks are flat at 6.1% and one month also increased to 6.95%.

Besides, the average USD interest rate offered in the overnight interbank market increased slightly to 3.92%, while other terms such as one and two weeks remained unchanged.

The average interbank interest rate in VND has been on an upward trend and has been high since the beginning of November. At the same time, interest rates on deposits in the residential market have also increased widely.

Sharing with investors, Mr. Vu Minh Truong - Director of Capital and Financial Markets, Vietnam Prosperity Bank ( VPBank ), said that the situation of credit growth faster than mobilization for a long time has put pressure on liquidity and interest rates at the end of the year.

According to the State Bank, as of October 30, outstanding credit in the entire system increased by about 15% compared to the end of last year and is expected to reach 19-20% by the end of this year - the highest in many years.

In a recently released report, VIS Rating - an investment credit rating agency - stated that liquidity is a matter of concern, especially for small banks. The industry's loan-to-deposit ratio (LDR) has reached 111%, the highest in 5 years due to credit growth far exceeding mobilization.

Liquidity pressure is most evident in small banks, and according to VIS Rating, is likely to continue in the context of these banks' increasing dependence on short-term market funding and high credit demand. In this context, deposits from the State Treasury play an important role in stabilizing the liquidity of the banking system.

According to vnexpress.net

Source: https://baodongthap.vn/lai-suat-lien-ngan-hang-tang-cao-nhat-3-nam-a233567.html