Interbank interest rates leap Hong Phuc HCMC – Interest rates for Vietnam dong loans on the interbank market have surged over the past two days, the first strong market movement since the Lunar New Year holiday (Tet) which ended in early February. Interest rates for all tenors inched up by 30-70 basis points from less than 4% over the weekend. Annual rates of overnight, one-week and two-week loans each on February 21 rose to 5.1% while three-week and one-month rates upped to 5%. Banks said despite a fall their liquidity remained stable and increasing interest rates were not cause for concern as credit institutions withdrew large amounts of Vietnam dong from open market operations (OMO) and other channels before Tet to ensure liquidity, settle payments including for treasury bills that fell due at the year-end, and meet requirements for their February compulsory reserves. Banks said they expected interest rates for overnight-to-two-week tenors would drop next week as a large … [Read more...] about Interbank interest rates leap
5 year closed mortgage rates
The first Chinese interest-rate cut in more than two years is a stark recognition that the world's second-biggest economy is in trouble. After years of piling ever more public debt onto the national balance sheet, it makes sense to have the People's Bank of China take the lead in propping up gross domestic product. Yet while today's benchmark rate cut should help stabilize growth, the move also adds to worries about looser credit that could pose risks to the global economy. Case in point: mortgages. Earlier this year, Chinese officials took several stealthy steps aimed at stabilizing the property sector and bolstering GDP growth. The China Banking Regulatory Commission loosened lending policies. Even before cutting the one-year lending rate to 5.6 percent and the one-year deposit rate to 2.75 percent today, the central bank had cut payment ratios and mortgage rates, while prodding loan officers to ease up on their reluctance to approve borrowers without local household registrations. … [Read more...] about Is China building a mortgage bomb?
The Federal Reserve hiked interest rates for the first time in nearly a decade on Wednesday, signaling faith that the U.S. economy had largely overcome the wounds of the 2007-2009 financial crisis. The U.S. central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs. "With the economy performing well and expected to continue to do so, the committee judges that a modest increase in the federal funds rate is appropriate," Fed Chair Janet Yellen said in a press conference after the rate decision was announced. "The economic recovery has clearly come a long way." The Fed's policy statement noted the "considerable improvement" in the U.S. labor market, where the unemployment rate has fallen to 5 percent, and said policymakers are "reasonably confident" inflation will rise over the … [Read more...] about Fed raises interest rates, citing ongoing U.S. recovery
The State Bank of Viet Nam this week instructed its municipal and provincial branches nationwide to closely monitor and inspect consumer loans from commercial banks. A staff member at the Vietnam International Bank conducts a transaction for customers. The State Bank of Viet Nam said it will closely monitor lending activities at commercial banks. — VNA/VNS Photo Tran Viet HA NOI (Biz Hub)— The State Bank of Viet Nam this week instructed its municipal and provincial branches nationwide to closely monitor and inspect consumer loans from commercial banks. The move is expected to ensure consumer-lending operations comply with applicable regulations and protect the rights of borrowers. Accordingly, branches, transaction offices and the service introduction points of credit institutions must publish detailed interest rate information applicable to each product group and each loan product. Additionally, the SBV branches, in collaboration with the banking supervisory … [Read more...] about SBV keeps close watch on lending
Continued monetary easing by the State Bank of Viet Nam, including the recent cut in interest rates, gave the real estate market reason for cheer during the first quarter. by Thuy Anh Continued monetary easing by the State Bank of Viet Nam, including the recent cut in interest rates, gave the real estate market reason for cheer during the first quarter. HCM CITY (VNS) — Continued monetary easing by the State Bank of Viet Nam, including the recent cut in interest rates, gave the real estate market reason for cheer during the first quarter. The cut, according to CBRE Vietnam managing director Marc Townsend, increases the chances of mortgage lending to expand and gives cause for investors to move away from bank deposits and into other asset classes. Stocks were one asset class that improved notably in the first quarter, with the HCM Stock Exchange ending the quarter up 12.5 per cent year-on-year. "Lowering interest rates and an improving stock market gives the real estate … [Read more...] about Year bodes well for property market