After more than 7 months of silence, SBV resumes lending through OMO channels

According to Donghai

Investing.com – On the last trading day of 2023 (December 29), the State Bank (SBV) took action to lend VND 4,551 billion to two members through the OMO channel with an interest rate of 4%/year and a tenor of 7 days . This is the first time since June 2023 that the marketable note mortgage loan channel has seen new transactions.

At the same time, there was no activity in the bill issuance channel and the last batch of bills expired in December, so the operator made a net injection of VND4,551 billion through the OMO channel on December 29.

Demand for value-for-money paper mortgages to support the liquidity of credit institutions was high in the first months of the year, reaching nearly VND27 trillion in some periods.

However, this demand has decreased since May and has no longer appeared since early June, showing signs of excess liquidity when credit institutions are in a “funding shortage” situation. Overnight interbank rates also moved lower, forcing operators to intervene by issuing 28-day bills to absorb funds.

However, in the last week of 2023, many short-term interbank rates suddenly rose while banks raced to inject capital into the economy.

Data from the General Bureau of Statistics show that as of December 21, the credit growth rate of the entire economy reached 11.09%. This result is relatively lower than the growth rate of 12.87% in the same period last year. However, credit growth improved significantly in the last few months of the year alone.

Previously, on September 20, according to the General Bureau of Statistics, the economic credit growth rate only reached 5.73%. If we look at recent data, as reported by the National Bank, on December 13, credit growth only reached 9.87%.

However, interbank rates for three months or longer continued to hold steady. Rong Viet Securities (HM:) (VDSC) said the evolution of 3-month interbank rates may indicate that loan demand will remain weak after the Chinese New Year in 2024.