Interbank interest rates climbed to 27% p.a. again

The interbank market seemed to heat up again with interbank interest rates surging to 27% per annum, nearly 2 times as high as the deposit rate cap, the local state-run online newspaper Tuoi Tre (“Youth”) reported on Nov 3.

Last week, the interbank interest rates cooled down after the State Bank offered conditional refinancing loans to 5-6 banks with VND1-5 trillion each to support liquidity to local banks, the newspaper added.

Big banks were reported to start offering loans for longer-term loans (3-6 months) instead of focusing on short-term ones (overnight, or several weeks terms) and removed the collateral requirements on interbank loans which was unprecedented.

The central bank was likely to issue new policies to regulate the lending activities in the interbank market to stabilize the market, said some unnamed bank managers.

Source StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Nov 5 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry