Interbank interest rates increased last week

In the currency market last week (from December 1 to 5), interbank interest rates for many terms approached 7.5%/year, an increase compared to many previous weeks. In particular, on December 4, overnight interest rates increased the most, by 1.48% to 6.88%/year, the highest since May 2023.

Illustration photo

Along with that, the 1-week and 2-week terms increased by 1.1% and 1.14% respectively to 6.92%/year and 7.22%/year; the 1-month term recorded an increase of 1.49% to 7.16%/year.

Meanwhile, the 3-month term increased slightly by 0.43% but with the highest interest rate, up to 7.34%/year. This development shows that the demand for short-term capital increased at the beginning of the month.

Experts say the sharp increase in overnight interest rates to 7% per year is not due to seasonal factors when capital demand increases, but shows that the banking system is temporarily lacking short-term liquidity, because overnight loans account for 90% of transactions in the interbank market.

The open market also recorded a strong capital injection scale, with 115,759.91 billion VND winning bids for terms of 7, 14, 28 and 91 days, interest rates increased to 4.5%/year in the last two days of the week. On the other hand, 80,442.76 billion VND matured on the mortgage channel, bringing the amount of capital in circulation on the open market to 366,082.41 billion VND, setting a peak in terms of capital.

The State Bank "injected" a net VND35,317.15 billion, extended the open market term, and at the same time, many new moves from the operator were also recorded such as: implementing 14-day foreign currency swap to support the system. Last week, the net capital injection was nearly VND74,000 billion.

According to the latest figures from the State Bank, as of the end of September, deposits from individual customers and economic organizations reached nearly 16.18 million billion VND, an increase of about 9.8% compared to the end of 2024. Meanwhile, credit at the same time increased by about 13.37%, showing that credit growth is far exceeding deposit growth. As of the end of November, credit had increased by 16.56%. These figures show that some banks are lending faster than the speed of capital mobilization.

It is forecasted that deposit interest rates may continue to increase in December, at the same time creating pressure on lending interest rates in 2026 when net interest margins face the risk of narrowing.

Source: https://hanoimoi.vn/lai-suat-lien-ngan-hang-tang-cao-tuan-qua-725952.html