The analysis centre of Saigon Securities Incorporation (SSI Research) has released a monetary market report for the week of June 1st to 5th. In the week, 25 trillion dong were injected into the Open Market Operation (OMO) via matured bills, while the State Bank of Vietnam (SBV) did not make any new transactions.
The abundant liquidity caused the interest rates to continue to fall slightly on the interbank market. Closing the week, the rates were 0.43 percent per annum on overnight term, down by six basis points; and 0.6 percent per annum, down by 15 basis points. The liquidity of commercial banks is currently stable, interest rates are likely to continue to level off in low zone and may increase slightly in the end of the month, the time to finalise the quarterly financial statements.
Meanwhile, the mobilisation of deposits showed more positive growth in the second quarter although the interest rates have been reduced significantly. According to information from the SBV, the credit growth as of May 29th was 1.96 percent compared to the end of 2019, higher than the 1.42 percent recorded in late April. Thus, after declining in the first half of May, the credit disbursement increased in the second half of May but remained low compared to the 5.8 seven percent per annum in the same period of the previous years.
In the week, the remaining banks in the big four state-owned banks cut deposit rates by 20 basis points, bringing the deposit interest rates of the entire group to the same level of six percent per annum on terms of 12 and 13 months.
As predicted by SSI Research, other commercial banks also further lowered deposit rates by 10 30 basis points across the terms. Currently, the rates are 3.5 4.25 percent per annum on terms of less than six months, 4.9 6.9 percent per annum on terms from six to less than 12 months, and from six to 7.6 percent per annum on terms of 12 and 13 months.
