Banking system shows signs of money surplus

The State Bank of Vietnam's headquarters in Hanoi. - VNA/VNS

HANOI: Vietnam’s banking system is showing signs of returning to a period of money surplus as no bank needs the State Bank of Vietnam’s (SBV) capital in the open market operation (OMO) channel and overnight interbank interest rates have dropped sharply.

Though the SBV has offered cheaper interest rates with longer-term loans in the OMO channel, no banks have taken part in the SBV’s offers. April 3 marked the 10th consecutive session that the SBV failed to lend capital on the OMO channel.