Forex rate vs interest rate
Forex rate and interest rate are two major macro variables in the economy, and they alongside inflation take center stage in monetary management. The correlation between the two variables was specially visible in 2022, with the State Bank of Vietnam (SBV) pivoting around each of them in its
PM asks SBV to lower loan interest rates
HCMC – Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV), the nation’s central bank, to slash interest rates, make loans more accessible and focus on lending to key economic sectors. This was done at the regular Government meeting held yesterday when PM Chim emphasized the
SBV sets new credit growth limits for banks
HCMC – Eight commercial banks have received new credit growth quotas for this year, with seven of them entitled to lend less than last year. The credit growth limit of HDBank is 11%, MB Bank 9%, ACB 9.8%, VIB 9.5%, TP Bank 9.1%, VPBank 9%, BIDV 8.3% and MSB 13.5%. These rates are lower than the […]
Interbank interest rates rise
HCMC – Vietnam’s interbank interest rates have edged up further due to the central bank’s net cash withdrawals from the banking system. The interbank rates for all tenors have risen, with the overnight rate increasing by 1.4 percentage points to 6%, according to a recent market report by SSI
What causes interest rates to slide?
Banks’ unexpected deposit rate cuts before and immediately after the Lunar New Year are explainable Unexpected, yet understandable The deposit rate bracket at Techcombank, effective from January 30, has undergone a drastic change, with a drop of 0.5 percentage point to 8.5% per annum for terms of
Limited monetary policy options
As monetary policy tools are nearly exhausted, fiscal policy needs expanding to spur growth as more challenges are on the horizon. Boosting public investment in infrastructure development and funding the economic recovery and development program are seen as key priorities in 2023. Narrower
Central bank withdraws money from market ahead of Fed meet
HCMC – Vietnam’s central bank net withdrew over VND30 trillion from the market last week as the banking system saw surplus liquidity due to slow credit growth. It issued 7-day and 91-day treasury bills totaling VND107 trillion, with the 7-day term accounting for much of the amount, at VND87
Novaland suggests debt extension for property firms
HCMC – Major property developer Novaland has asked the central bank to enable debt restructuring and extension from 24 to 36 months for property firms. The proposal was made by Do Thi Phuong Nam, director for corporate restructuring at Novaland, during a meeting between the State Bank, lender
Interbank interest rates surge
HCMC – Interbank interest rates surged last week as the State Bank of Vietnam (SBV), the country’s central bank, shifted from net cash injections to withdrawals from the banking system. February 2 saw the interbank rate for the 9-month term jumping to 13% per annum from the previous 9.61%, but the
SBV pumps more money into banking system post Tet
HCMC – The State Bank of Vietnam (SBV) has injected more money into the banking system since the Lunar New Year (Tet) holiday ended more than 10 days ago. The central bank on February 3 bought over VND2.4 trillion worth of seven-day valuable papers with an annual coupon rate of 6%, while draining
The credit growth puzzle
The fact that banks have refrained from lending does not result from their concerns over the credit growth cap since it has already been revised up without any abrupt surge in new loans. There are other factors influencing how banks lend. The 2022 target As of December 21, credit growth in the
Challenges for banks ahead
Many banks might have recorded positive profit growth in 2022. But challenges are awaiting them this year given negative factors such as high interest rates and bad debt. Rising interest rates On January 5, 2023, VietinBank said it was looking to obtain VND19.45 trillion in pre-tax profit in 2022,