By March 17 noon, most of the commercial banks in Vietnam had lowered their interest rates on savings accounts with terms of less than 6 months after the State Bank of Vietnam (SBV) announced its policy rate cut a day earlier.
The State Bank of Vietnam (SBV) will cut its policy rates starting from March 17 in an attempt to support the economy which has been hurt by the COVID-19 outbreak.
Though Tet (Lunar New Year) is approaching with rising capital demands, the liquidity of the banking system is abundant, helping interest rates in the inter-bank market drop sharply, industry insiders said.
The State Bank of Vietnam (SBV) will continue to follow a pro-active, flexible and cautious monetary policy as well as working in close conjunction with fiscal and other policies to control inflation, sustain the macro-economy and support economic growth in the second half of this year.
Liquidity in the interbank market has been abundant, helping the State Bank of Vietnam (SBV) resume the issuance of treasury bills after five months to withdraw Vietnamese dong from the banking system.
The State Bank of Vietnam should consider developing a roadmap to remove regulations on credit growth limits and interest rate caps as it isn’t suitable due to the country’s achievements in stabilising the nation’s economy, according to experts.
The State Bank of Vietnam withdrew a large amount of money worth 177 trillion VND (7.79 billion USD) via the open market operation and the issue of Treasury bills in the past week.
The State Bank of Vietnam has targeted keeping interest rate stable in 2017, however, the market’s developments in the first half of January 2017 show that lending rates are suffering from many pressures.
The State Bank of Vietnam (SVB) has awarded a certificate of merit and commemorative medals to Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) GmbH Vietnam leaders and managers.
Vietnam's growth, though not stellar, is continuing, as latest
high-frequency indicators suggest domestic demand is rebounding, albeit
at a gradual pace, according to HSBC's Asian Economics quarterly report.
The English language news website VietNamNet Bridge on April 18 reported
that banks have had to inject their money into government bonds as
credit gets stuck.
National agencies will provide more information to international credit
rating bodies to ensure accurate representations of Vietnam's economic
wellbeing, after Prime Minister Nguyen Tan Dung signed off on a new
decision 61/2013/QD-TTg.
Around 10 credit institutions are queuing up to sell their
non-performing loans to the Vietnam Asset Management Company (VAMC), in
an attempt to shore up their balance sheets
The deposit interest rate at some commercial banks has significantly
exceeded the State Bank of Vietnam's cap and has hit 19 percent per
year.
While banks are officially quoting the same 14 percent interest rate
for dong deposits, credit officials have been offering depositors
between 16-19 percent per year.
Commercial bank liquidity has improved dramatically since the State Bank
of Vietnam injected a heavy volume of capital at reasonable
interest rates into the Open Market Operation, OMO, in July.
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