The weekly monetary market report to December 6 of SSI Research has just announced that last week, the State Bank continued to buy a 14-day term with an interest rate of 4% / year totaling VND 34,593 billion while having due OMO of VND 31,286 billion. The T-bill channel did not generate any transactions and the balance was zero. In general, the SBV net injected VND 3,307 billion via the open market, along with the transactions of selling foreign currencies to the State Bank also helped increase the supply of VND.
However, the interbank market was still very active, the overnight interest rate remained above the OMO interest rate, ending the week at 4.01% / year (+9 bps basis points), for the 1-week term it stayed at 4.1% / year (+ 11bps).
After a slight decrease in a number of small banks last week, interest rates on market 1 did not have any further adjustments in the past week, ranging from 4.1-5.0% per year for terms of less than 6 months, 5.5-7.5% / year with terms of 6 to less than 12 months and 6.4-7.9% / year with terms of 12, 13 months.
In previous years, credit often increased sharply at the end of the year and far exceeded deposit growth but this year is developing in a different direction, deposit growth from August 2019 was higher than credit growth.
SSI Research did not mention specific numbers of credit and deposit growth, but according to data from the General Statistics Office released in late October, while new credit increased by 8.4% and capital mobilization increased by 8.68% (At the end of November, GSO did not mention these indicators). Moreover, the fact that we have compiled from 9-month financial statements of banks also shows that the growth rate of capital mobilization in banks is better than credit.
Explaining the reason for high capital mobilization, SSI Research said that it seems that attractive interest rate level has been attracting the attraction of deposit flow while credit disbursement slowed down compared to the same period last year. At the peak period at the end of the year and near the lunar new year, deposit rates will anchor high and then maybe reduced, focusing on short terms. Long terms over 12 months will fall more slowly due to regulations on the ratio of short-term capital for medium and long-term loans and there is still interest rate differentiation between large and small commercial banks.
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