Vietnam central bank net injects vnd21trl via omo in week ending sept 9

The State Bank of Vietnam, the country’s central bank, net injected VND21 trillion into commercial banks through the open market operations in the week ending Sept 9, to support liquidity in the banking system.

This was the first week central bank net pumped money after keeping a balance between pumping and withdrawing for a month, the local financial website NDHMoney reported September 12 citing Bloomberg’s data.

The net injection was for 7 day window, 14% interest rate per annum and was in line with the governor pledge to support banks’ liquidity.

In the interbank market, interest rates for three-month loans surged to 20% per annum, Reuters data showed.

The rate hikes on the interbank market occurred after meeting between central bank and 12 biggest local commercial banks with a result of strictly enforcing 14% deposit interest rate cap.

Local online newspaper Thanh nien reported that banks can lend VND47.6 trillion/month in the last 4 months of the year. – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial