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Saturday, July 20, 2024

Interbank interest rates plunge

The Saigon Times

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HCMC – Liquidity in the banking system has improved, which is evident in the strong decline in interbank interest rates.

Last week, the interbank interest rates for all tenors dropped, with the overnight rate plunging 2.2 percentage points week-on-week to 1.2% per year, the lowest since July 2022.

The interbank lending rates for one-week, two-week and one-month tenors now stand at 1.9%, 2.9% and 4.43% per year, down by 2.1, 1.68 and 1.35 percentage points, respectively.

The interbank interest rate is charged on short-term loans made between banks. A high interbank rate suggests a liquidity problem in the banking system and may exert pressure on deposit and lending rates at commercial banks and vice versa.

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