Liquidity levels have eased.

According to statistics from the State Bank of Vietnam, interbank interest rates decreased across all maturities last week (November 17-21), indicating that the system's liquidity has become less strained compared to the previous week.

Accordingly, the overnight interest rate fell to 4.18% per annum on November 20th, a decrease of 0.33%, the largest adjustment for this term.

The 1-week maturity also fell to 4.43%, a decrease of 0.24%; longer maturities such as 2 weeks and 1 month continued their weakening trend, decreasing by 1.03% and 0.1% respectively compared to the end of the previous week.

For longer terms, rates such as 1 month decreased slightly by 0.1% to 5.17%; and 3 months decreased by 0.2% to 6.2%.

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In the open market operations (OMO), the week of November 17-21 recorded a successful bid volume of VND 61,444 billion across 7, 14, and 28-day maturities, with interest rates remaining at 4%. Meanwhile, only VND 89,955.54 billion matured through the collateralized lending channel, bringing the total outstanding capital through this channel down to VND 256,842 billion. Thus, the State Bank of Vietnam significantly withdrew VND 28,511.24 billion last week, after five consecutive weeks of injecting liquidity to maintain stability in the banking system.

According to the latest report from the State Bank of Vietnam, in October, the average interest rates on VND deposits at domestic commercial banks were: 0.1-0.2%/year for demand deposits and deposits with maturities of less than 1 month; 3.4-4.2%/year for deposits with maturities from 1 month to less than 6 months; 4.6-5.5%/year for deposits with maturities from 6 months to 12 months; 4.9-6.1%/year for deposits with maturities from over 12 months to 24 months; and 6.7-7.5%/year for maturities over 24 months. The interest rate on USD deposits at credit institutions was 0%/year for both individual and institutional deposits.

The average VND lending interest rate of domestic commercial banks for new and existing loans with outstanding balances is 6.5-9.0% per year. The average short-term VND lending interest rate for priority sectors is approximately 3.9% per year, lower than the maximum short-term lending interest rate stipulated by the State Bank of Vietnam (4% per year). The average USD lending interest rate of domestic commercial banks for new and existing loans with outstanding balances is 4.3-5.0% per year.

Source: https://hanoimoi.vn/mat-bang-thanh-khoan-da-bot-cang-thang-724373.html