Interbank overnight interest rate down 1.1pct

The interbank average interest rate on September 12 decreased in almost all terms against last weekend (September 9) whereby the interest rate for 12-month term saw the strongest fall of 1.5% to stand at 12% per annum (p.a.), according to the State Bank of Vietnam (SBV).
Particularly, the interbank overnight interest rate fell 1.1% to 12.09% p.a., marking the lowest level in nearly two weeks.

The interest rate for 12-month term declined 1.5% to 12% p.a., marking the lowest in nearly three weeks (since August 25).

The interest rate for terms of 1-week, 2-weeks, 1-month and 3-months also fell by 0.34-0.77% to 13.05% p.a., 13.01% p.a., 13.56% p.a. and 12.41% p.a. respectively.

Notably, the interest rate for 6-month term remained unchanged at 13.5% p.a.

According to the data compiled by Reuters and the local online newspaper NDHMoney, in the week between September 5 and 9, the central bank posted a net injection of 21 trillion dong on open market operations (OMO).

Meanwhile, according to the local newswire Nguoi Lao Dong, representative of Hochiminh City Securities Joint Stock Co (HSC) said that in last weekend, the central bank marked net withdrawal of 15 trillion from some large banks to pump capital for smaller lenders. Deputy general director of a Hanoi-headquartered bank also confirmed the information on this capital injection.

Also according to Reuters and NDHMoney, in the first three days of this week (September 12 to 14), the central bank returned to net withdrawal of six trillion dong on OMO.

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