Interbank overnight interest rates rise again

According to data from the State Bank of Vietnam (SBV), the average interbank interest rate in VND for overnight term on December 25, 2023 increased from 0.25%/year to 0.74%/year compared to the end of last week.

Other interest rates also showed signs of increasing. Specifically, short-term rates such as 1 week increased by 1.2% compared to the end of last week, up to 1.76%; 2-week rates increased by 0.57% to 1.74%; 1-month rates increased by 0.1% to 1.57%.

Overnight interbank interest rates suddenly increased (Photo TL)

In contrast, the 3-month and 9-month interest rates both decreased to 3.29% and 6.04%, respectively. The 6-month interest rate increased slightly from 4.86% to 5.08%.

Interbank interest rates have been continuously increasing in recent trading sessions. There was a time when interbank interest rates remained lower than 0.2% when the State Bank stopped issuing treasury bills.

The fluctuations in overnight interbank interest rates are relatively consistent with the predictions of many experts for the banking industry. Interest rates may increase slightly because it is the end of the year, but a liquidity shortage is unlikely to occur. This is clearly shown when many commercial banks continue to have a tendency to reduce deposit interest rates.

Since the beginning of 2023, the average deposit interest rate has decreased by 2.5% - 3.0%. Many experts believe that the excess liquidity in the system is due to the economy's low credit absorption capacity. Accordingly, by the end of November, the credit growth of the entire system had only reached 9.15%, much lower than the expectation of 14% set by the State Bank.

Source: https://www.congluan.vn/lai-suat-qua-dem-lien-ngan-hang-tang-tro-lai-post278702.html