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Inter-bank rates touch 10-month high of over 5%

Update: December, 23/2016 - 16:00
Inter-bank rates have hit a 10-month high of more than 5 per cent per year. - Photo
Viet Nam News

HÀ NỘI — Following a sharp rise in the past few weeks, inter-bank rates have hit a 10-month high of more than 5 per cent per year due to decreasing liquidity in the banking system, said Bảo Việt Securities Co (BVSC).

According to the BVSC’s latest report, last week, the inter-bank rates for all tenors rose 1.25 per cent to 5.1 per cent per year for overnight loans, 1.17 per cent for one-week loans to 5.11 per cent, and  0.95 per cent for two-week loans to 5.07 per cent.

The State Bank of Việt Nam (SBV) last week also injected VNĐ35.059 trillion (US$1.544 billion) via Open Market Operation (OMO) to support liquidity in the banking system.

Though the central bank has stopped issuing T-bonds of all terms, the total maturity capital via the channel reached VNĐ2.590 trillion last week.

Rising inter-bank rates indicate that liquidity in the banking system is currently not as high as it was in the third quarter when the inter-bank rates fluctuated around 1-2 per cent per year, the BVSC report said.

Liquidity has gone down as a result of rising credit demand ahead of Tết (Lunar New Year), as businesses need money to reserve goods for the country’s largest holiday and the demand for payments for imported goods is high.

By the end of November, credit growth rose 15.8 per cent against December last year while capital mobilisation increased by 15.2 per cent.

The BVSC has forecast that inter-bank rates will continue to remain high, at 4.5 to 5 per cent per year, till Tết, which is in end-January. — VNS



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