The State Bank of Vietnam (SBV) has extended the credit growth limits for the third time this year to some commercial banks to meet rising capital demands at year-end.
Though Tet (Lunar New Year) is approaching with rising capital demands, the liquidity of the banking system is abundant, helping interest rates in the inter-bank market sharply, industry insiders said.
Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits were putting pressure on commercial banks to issue bonds in the final months of the year.
The State Bank of Viet Nam (SBV) has directed commercial banks to prepare funds in a move to timely meet capital demands of rice exporters as regulated in Decree 107/2018/ND-CP on rice export operations.
Private commercial banks have raised deposit rates by 0.1-0.3 percentage points in the past two months to attract depositors amid rising capital demands.