According to the monetary market report by SSI Retail Research, at the end of Q2, the supply of dong in the interbank market was often poor so the interest rates increased by 70-91 basis points (bps) compared to the previous week, at 4.014 percent per year with overnight rates and 4.043 percent per year with one-week term.
Also last week, the State Bank of Vietnam (SBV) net injected 47 trillion dong in the open market, of which 35 trillion dong via Treasury bills and 12 trillion dong via Open Market Operations (OMO). The number of circulating bills has been declining recently, at 33 trillion dong, while the circulation of OMO has been 21 trillion dong.
Market 1 deposit interest rates remained stable at 4.1 percent to 5.5 percent with terms of less than six months; 5.5-7.45 percent for terms of six to less than 12 months; 6.4-7.9 percent with 12 to 13 month term, except for some banks with small market share, offering interest rate of over eight percent.
Data from the general Statistical Office showed that, as of June 18, 2019, credit growth was 6.22 percent, higher than the rate of 6.1 percent in the same period in 2018, but mobilised growth was only 6.09 percent, much lower than the level of 7.76 percent of the same period 2018.
The analysts of SSI said that the data at the end of June announced by SBV would be larger than the statistics of the general Statistical Office because credit institutions would boost mobilisation and lending in the last days of the month. However, it was clear that capital mobilisation was growing slowly while the requirements for safety and liquidity indicators were higher, making the interest rates in the near future remain high.
