Liquidity remains stable.

(HNMO) - According to experts from Saigon Securities Company (SSI), liquidity in the banking system remains stable and activity on the open market channel is quite subdued.

Interest rates have fallen.

Accordingly, last week, the State Bank of Vietnam issued only 715 billion VND through the repurchase agreement channel, including 11 billion VND for 7-day maturities and 705 billion VND for 28-day maturities at an interest rate of 4.5% per annum to finance maturing bills on this channel. The volume of 91-day maturing treasury bills reached 24.8 trillion VND, resulting in a net injection of nearly 25 trillion VND by the State Bank of Vietnam through the open market. The outstanding volume on the treasury bill channel decreased to 16.9 trillion VND and will all mature this week.

For the collateralized lending channel, the outstanding volume remained almost unchanged at VND 1.4 trillion. Abundant liquidity helped interbank interest rates fluctuate within a narrow range (3.8 – 4.0% for overnight maturities and 4.3 - 4.7%, while remaining stable for maturities under 1 month).

According to SSI experts, the economy 's weak capital absorption capacity is due to three main reasons. Firstly, manufacturing businesses are facing difficulties in selling their products, leading to reduced demand for loans; secondly, small and medium-sized enterprises (SMEs) are experiencing weakened financial situations, preventing them from meeting bank loan requirements; and thirdly, real estate businesses are facing decreased demand due to legal difficulties in many projects.

However, the State Bank of Vietnam will continue to cool down interest rates, with the average lending rate (excluding preferential rates) at around 12.5% ​​per year, a decrease of about 2.2% per year compared to the end of 2022, but still about 2% higher than in 2019.

Source: https://beta.hanoimoi.com.vn/thanh-khoan-tiep-tuc-on-dinh-444745.html