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|Central bank’s headquarters in Ha Noi. - Photo SBV|
This has caused the central bank to pump a significant amount of money into the banking system to support the liquidity, a new report from the Saigon Securities Company (SSI) revealed.
In its weekly report on the monetary market, SSI said the central bank pumped VND6.8 trillion (US$299.5 million) into the banking system last week following seven consecutive weeks of withdrawing money out of the system.
The interest rate in the inter-bank market last week also increased for the second consecutive week. The overnight rate closed the week at 0.7 per cent, up 3 basis points from the end of the previous week. The rate for one-week loans rose by 14 basis points to 0.99 per cent.
SSI forecast that the liquidity of the banking system will suffer more pressure in the next few months when the capital demand rises sharply.
With the aim of meeting the rising capital demand, many banks, especially small- and medium-sized ones, are offering high-interest rates and promotion programmes to compete for the mobilisation of deposits.
According to statistics from the State Bank of Viet Nam, credit growth in the first nine months of this year rose 11.02 per cent against December last year. The increase was much higher than the rates of 10.78 per cent and 10.46 per cent in the same period in 2015 and 2016, respectively.