Interbank interest rates soar

Interbank interest rates Overnight (the interest rate on mutual borrowing of banks) increased continuously, sometimes up to 3.4%/year. Over the past two years, overnight interbank rates have rarely been this high.

Interbank interest rates increased sharply in the first period of the year due to a lack of liquidity in the system before the Lunar New Year.

However, through the peak season of the Lunar New Year, interest rates on the interbank market returned to stable levels. Compared to the beginning of the month, interbank interest rates at the end of March decreased from 0.1-0.4 percentage points. Currently, the overnight interbank interest rate is at 2.13%/year. Compared to the overnight interest rate in the same period last year, the interbank interest rate is now 6 times higher.

Experts say that the cost of capital in the interbank market has been quite low in the past two years. In mid-February last year, the overnight interbank interest rate was only around 0.29%/year.

The establishment of new premises is in line with market movements. The current overnight interbank interest rate at 2-3%/year is reasonable.

Liquidity has been relatively stable and only a partial shortage in a few small banks. Interbank interest rates increased in the context of credit showing good signs of recovery. By mid-March, credit growth reached more than 3%.

Many banks choose to borrow from each other instead of raising capital from the population.

Meanwhile, since Tet, the amount of savings deposits into the banking system is somewhat slower because people have chosen many other investment channels such as securities and real estate.

Linh Anh