The recent interest rate cuts by the State Bank of Việt Nam (SBV) have little impact on the Vietnamese stock market.
Volatility on Việt Nam’s stock market in the past two months has dragged down the performance of foreign investment funds here.
The State Bank of Việt Nam (SBV) has cut several interest rates for the first time since 2014 in order to support business and boost economic growth.
Despite good liquidity in the banking system, the peculiarities in Việt Nam’s monetary policy management has prevented the decline of interest rates on deposits, a central economic report said.
Federal Reserve policymakers are putting markets on notice that the central bank’s US$4.5 trillion balance sheet is back on the agenda in an apparent effort to give investors time to prepare for changes rather than to signal any action is imminent.
The banking – enterprises connection programme enabled around 22,000 businesses in HCM City to borrow over VNĐ280 trillion (US$12.5 billion) from banks last year.
The State Bank of Việt Nam (SBV) has set the target of credit growth at 18 per cent for this year while pledged to continue taking measures to control the credit growth so as to be suitable to the country’s economic development.
Supporting businesses is among the focal tasks of the banking system till 2020, Deputy Governor of the State Bank of Việt Nam (SBV) Đào Minh Tú has said.
Pressure from ensuring liquidity, meeting rising credit demands and purchasing Government bonds has caused commercial banks to hike their savings interest rates to attract depositors.
After pushing long-term rates to a two-year high of 8.38 per cent, some commercial banks continue to raise short-term deposits to the 5.5 per cent cap.