July credit has almost no growth in most banks
admin 12-08-2020, 11:06

According to SSI’s experts, low credit growth caused the deposit and credit gap to continue widening. The movement of deposit interest rates in the coming time still depends mainly on the ability of banks to increase the credit market.

The recent money market report by SSI Securities JSC said that after accelerating at the end of June, July credit hardly grew at most commercial banks (commercial banks).

According to SSI Research’s experts, this makes the deposit versus credit gap widening, the liquidity of commercial banks is still abundant, the interest rates on the interbank in the short term will remain stable at the current level.

July credit has almost no growth in most banks

Source: Bloomberg, SBV, SSI compiled

During the first week of August from August 3 to August 7, the State Bank continued to not conduct transactions on the open market. Interbank interest rates remained low, closing the week at 0.26% / year with overnight interest rates and 0.35% / year for 1 week terms.

Commenting on the SBV’s adjustment to reduce some deposit interest rates during the week, SSI Research said that only the compulsory reserve deposit interest rate (DTBB) will have an impact on commercial banks, causing interest income from deposits can be reduced but the reduction is very small. It is estimated that with 4 large state-owned commercial banks, it is only about 100-250 billion dong.

“This reduction in interest rates is in line with the recent decline in deposit rates and interbank interest rates and will impact on market sentiment, increasing the expectation of lowering deposit rates of commercial banks”, written report.

In practice, however, the real impact on market interest rates is almost negligible. According to a survey by SSI, deposit interest rates do not change much in the first week of August and according to experts, the movement of deposit rates in the coming time still depends mainly on the ability of credit growth.

Source: Bloomberg, SBV, SSI compiled

Source: vietnambiz.vn

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