Liquidity remains stable

(HNMO) - According to experts from Saigon Securities Company (SSI), liquidity in the banking system continues to be stable and activities on the open market channel are quite quiet.

Interest rates decrease.

Accordingly, last week, the State Bank issued a total of VND715 billion in new issuance on the term purchase channel, of which VND11 billion was for the 7-day term and VND705 billion was for the 28-day term with an interest rate of 4.5%/year to finance the maturity on this channel. The volume of 91-day term bills maturing reached VND24.8 trillion, and thanks to that, the State Bank has net injected nearly VND25 trillion through the open market channel. The volume of circulating bills on the bill channel decreased to VND16.9 trillion and will mature this week.

For the mortgage channel, the circulating volume is almost flat at VND1.4 trillion. Abundant liquidity helps the interbank interest rate fluctuate within a narrow range (3.8 - 4.0% for overnight terms and 4.3 - 4.7% while remaining stable for terms under 1 month).

According to SSI experts, the economy 's capital absorption capacity is weak due to three main reasons. That is, for manufacturing enterprises, product consumption output is difficult, causing a decrease in demand for loans; for small and medium enterprises, the financial situation is weak, leading to failure to meet bank loan requirements; and for real estate enterprises, demand has decreased because many projects have encountered legal difficulties.

However, the State Bank will continue to cool down the interest rate level, in which the average lending interest rate (excluding incentives) is about 12.5%/year, down about 2.2%/year compared to the end of 2022 but still about 2%/year higher than in 2019.

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