(HNMO) – According to experts of Saigon Securities Company (SSI), liquidity in the banking system continues to be stable and operation on the open market channel is quite quiet.
Accordingly, last week, the State Bank only issued a total of 715 billion dong on the term buying channel, of which 11 billion dong for the 7-day term and 705 billion dong for the 28-day term at an interest rate of 4,5%/year to finance the maturity on this channel. The volume of 91-day bills to maturity reached VND 24,8 trillion and thanks to that, the State Bank net injected nearly VND 25 trillion through the open market channel. The circulating volume on the T-bill channel decreased to VND 16,9 trillion and will expire this week.
For the mortgage channel, the circulating volume was almost flat at 1,4 trillion dong. Abundant liquidity helps interbank interest rates fluctuate within a narrow range (3,8-4,0% for overnight terms and 4,3-4,7% while being stable for less than 1-month terms).
According to experts of SSI, the capital absorption of the economy is weak due to 3 main reasons. That is, for manufacturing enterprises whose output and consumption are difficult, the demand for loans decreases, for small and medium-sized enterprises whose financial situation is weakened, leading to not being able to meet the loan requirements of banks, and for real estate enterprises, the demand decreases due to many projects having legal difficulties.
However, the State Bank will continue to cool down the interest rate, 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.
