Interbank Vietnamese Dong interest rates rise.

Interest rates on Vietnamese Dong loans between banks in the interbank market continued to rise slightly by 0.1 - 0.6% per year, bringing the total increase compared to the end of last week to about 1%. The State Bank of Vietnam continued to provide liquidity support through open market operations.

According to the State Bank of Vietnam (SBV), interbank market interest rates on May 26th increased slightly compared to the end of last week. Vietnamese Dong interest rates rose to 7.68%/year for overnight maturities, 7.48%/year for 1 and 2 weeks, 7.49%/year for 1 month, 7.75%/year for 3 months, and 8.55%/year for 6 months… Transaction volumes were mainly concentrated in overnight maturities, reaching 816,140 billion VND, while 1-week maturities had volumes of 78,364 billion VND, and 2-week maturities had volumes of 14,150 billion VND.

Interest rates on interbank loans have increased.

PHOTO: NGOC THANG

In the open market operations (OMO), banks successfully bid for large volumes. On May 27th, for the 7-day term, 7 members won bids totaling VND 6,000 billion; for the 35-day term, 10 members won bids totaling VND 13,000 billion; and 19 members won bids for the 56-day term totaling VND 14,000 billion. The winning interest rate was 4.5% per annum. From May 18th to 20th, in the collateralized lending channel, the State Bank of Vietnam (SBV) offered VND 45,000 billion with maturities of 7 days, 35 days, and 56 days, maintaining the interest rate at 4.5%. All of these volumes were successfully bid. During the week, VND 52,000 billion matured in the collateralized lending channel, and the SBV did not offer any SBV bills. Thus, last week, the SBV withdrew a net VND 7,000 billion from the market through the OMO channel. There are 301,578.83 billion VND in circulation through the mortgage channel.

According to the Vietnam Banking Association, there has been a significant disparity between lending and deposit activities in banks recently, putting pressure on the system's liquidity. Deposit interest rates continue to be highly differentiated, fluctuating from 3.7% to 7.7% per year. Through its monitoring process, the State Bank of Vietnam (SBV) has discovered that some commercial banks are still adjusting interest rates upwards. Therefore, the SBV has requested its regional branches to hold meetings with commercial banks to ensure they implement interest rate reductions and to monitor their compliance.

Source: https://thanhnien.vn/lai-suat-tien-dong-lien-ngan-hang-tang-185260528111750803.htm