Interbank interest rates increase sharply

Since the beginning of this week, VND interest rates on the interbank market have continuously increased, and the system's capital surplus is no longer as abundant as in the fourth quarter of 2019 and earlier.

Interbank interest rates increase sharply

During the peak production and business season at the end of the year, credit demand often increases sharply and the speed of capital use in market 1 of banks increases.

According to an update from the Economic Research Center of Maritime Bank, as of November 15, VND interest rates have recorded a clear breakthrough in the interbank market, far surpassing the low interest rate range of under 1%/year in previous months.

Specifically, the average VND interest rate offered on the interbank market on November 15 increased by 18-25 points compared to the previous session. The overnight interest rate increased to 1.9%/year, the 1-week term was 2%, the 2-week term was 2.22%, the 1-month term was 2.48%. These are the highest interest rates since June 2016.

Along with the above developments in interest rates, the capital surplus of the system in general is no longer as surplus as before. In part, the market is entering the peak season of production and business at the end of the year, credit demand often increases sharply in the last months of the year and the speed of capital use in the market 1 of banks is accelerated.

Reflecting the above situation, the amount of treasury bills issued by the State Bank to withdraw money has decreased significantly in recent sessions. On November 15, this agency only successfully issued 200 billion VND of treasury bills with a term of 1 month and an interest rate of 1.5%. For the term of 2 weeks, the State Bank set the bidding interest rate at 0.7%, but no member had any demand.

The volume of State Bank bills in circulation as of November 15 decreased to VND53,270 billion, meaning the amount of capital temporarily "stored" has decreased compared to the scale of nearly VND90,000 billion of bills in the third quarter of 2016.

According to VnEconomy