"It is unlikely that the next time interest rates will rise." Bank



The number of banks that raise interest rates was dominant in the system, the highest increase by a maximum of 8.6% per year over a period of 24 months or more. What are you causing in this situation?

Interest rates rose mainly in the medium and long term, such as a few months as required by Circular 06, as from 1 January 20119, banks are allowed to use 40% of short-term medium and medium-sized loans. long term instead of 45%, so more medium and long term funding is needed. In the short term, the interest rate rise is the only situation where some banks need capital.

Moreover, the phenomenon of credit space in some banks is on, the state bank of Vietnam does not approve the credit space, the demand for capital is reduced, so the part of the credit space is used up in the short term. It is not necessary to increase interest rates for short terms.

According to his savings interest rate increase, interest rates have risen?

I do not think interest rates will rise, but interest rates are currently being maintained. However, with the exception of the increased credit interest in the near future due to capital raising, increasing long-term interest rates and many medium and long-term loans.

The increase in savings rates is the short-term or inevitable trend, sir?

The issue of raising interest rates has many reasons and may not be immediate action, but from now on the end of the year will continue in the medium and long term.

In addition, depending on the exchange rate problem, there is a lot of pressure to raise the exchange rate, with the exchange rate increase if it can put pressure on interest rates, especially interest rates must remain relatively high to limit the pressure on the exchange rate. In the coming period, the Fed may raise interest rates, the trade war between the US and China will create pressure and maintain the interest rate differential between USD and VND. If the exchange rate rises, people can withdraw VND and buy USD.

Guideline 04 of the State Bank of Vietnam aims to tighten control of credit growth this year with the aim of supporting inflation control by tightening credit growth in 2018, he said. To influence the profitability of banks?

Banks will of course find it difficult to achieve profit targets, so the SBV may find it difficult to open the bank space, so that banks have to adjust their profit targets as credit facilities blocked by the state bank.

In addition to credit growth, if you want to maintain profit targets, you have to be competitive on the credit market for other credit institutions, borrowing government bonds, but in the market two lower profit levels. In addition, it may have to stimulate non-interest income sources and reduce operating costs, despite some efforts it may be difficult to offset the decline in the profitability of non-credit-linked room loans.

Thanks!


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