The analysis centre of Saigon Securities Incorporation (SSI Research) has released the monetary market report for the week of June 15th 19th. Accordingly, the State Bank of Vietnam (SBV) did not make any transaction on the Open Market Operation (OMO). The OMO and bill balance was kept at zero.
The abundant liquidity caused interest rates to continuously fall on the interbank market, closing the week at 0.25 percent per annum on overnight term and 0.4 percent per annum on one-week term, down by 10 basis points. This is an unprecedentedly low interest rate zone on the interbank market.
According to information of the SBV, the credit growth of the entire banking sector from the beginning of the year until June 16th was 2.13%. Since commercial banks often boost credit disbursement in the second half of June, the semi-annual growth may improve but will still be far away from the growth rate of 7.36 percent in the first half of 2019.
The demand to meet liquidity indicators at the end of the quarter may cause interbank interest rates to inch up this week but will remain low because the supply is still very abundant.
The market 1 in the last week was also fairly calm, deposit interest rates remained at 3.5 4.25 percent per annum for term of six months, 4.9 6.9 percent per annum for terms from six to less than 12 months, and from six to 7.6 percent per annum for terms of 12 and 13 months.
