Vietnam central bank raises re-financing rate to 15pct/year

The State Bank of Vietnam (SBV) issued Decision No. 2210/QD-NHNN on refinancing interest rate, and overnight loan rate in the inter-bank electronic payment and applicable to loans for offsetting capital deficit in the clearing payment of the central bank for commercial banks.
Accordingly, the refinancing rate was increased from 14% per year to 15% per year. The interest rate for overnight loans in the interbank electronic payment was pushed from 14% / year to 16% / year, taking effect from Oct. 10, 2011.

The same day, the SBV issued Decision No. 2209/QD-NHNN about reducing the interest rate of statutory reserves for deposits in foreign currency from credit institutions at the central bank from 0.1%/year to 0.05%/year, effective from Oct. 2011.

The foreign currency deposit interest rate and and treasury interest rate at the central bank were cut down from 0.1% / year to 0.05% / year, effective from Oct. 10, 2011.

The purpose of adjusting the aforementioned interest rates was primarily to ensure the reasonableness of the relationships between the operating rates of the State Bank and the role of the State Bank as the end-lender aimed to improve the efficiency of monetary policy and regulate the market interest rates. – Source: Vietbiz24.com

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

Posted by VBN on Oct 7 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