The State Bank of Vietnam has a series of new moves after a series of fluctuations in exchange rates and interest rates. Many banks received a high credit room extension, increased USD selling price, and interest rate support.
Revealing the credit room limit of banks
Sacombank leads the list with increased credit room at 4%. Other banks such as Agribank 3.5%, MB 3.2%, SHB 3.2%, VIB 3%, Vietcombank 2.7% TPBank 1.2%.
Previously, the market had speculated that Vietcombank and MB would be the two banks that received the highest credit room because they were "hugging" two weak banks to assist in handling. However, this time, Vietcombank only received 2.7%. Sacombank suddenly became the bank with the highest credit room extension of 4% compared to the old limit of 7%. Calculated on the total loan balance of more than VND 400,000 billion at the end of the second quarter, this bank has room to grow by more than VND 11,000 billion by the end of the year.
According to The State Bank of Vietnam (SBV)'s data, as of August 26, the credit of the whole economy increased by 9.91% compared to the end of 2021, a high increase compared to the same period in recent years, in line with economic growth. The economy, supporting businesses, and the economy recovered positively in recent months.
Interbank interest rate reached 6.88%/year, set a 10-year peak
Notably, interest rates have increased sharply in recent days, even though SBV has net pumped again from the end of August 2022 until now. Along with that, the number of bills maturing during the week was about VND 35,000 billion. Thus, during the week, SBV net injected about 53,000 billion VND into the market.
In the session on September 7, SBV continued to net pump 18,720 billion VND through the OMO channel. However, the heat of interest rates has not cooled down as interbank interest rates continued to peak at 6.88%/year - the highest level since September 2012.
The USD exchange rate increased sharply
The exchange rate after a period of stable movement increased again in the last week of August and the first trading sessions of September. Under great pressure, SBV decided to increase the selling price of USD by 300 VND, to 23,700 VND/USD.
On the afternoon of September 7, the SBV Exchange changed the list of prices for buying and selling foreign currencies. Which, the selling price has increased sharply from 23,400 VND/USD to 23,700 VND/USD. At the same time, this agency also stopped listing the intervention buying rate. Previously, in May, SBV adjusted the USD exchange rate by 200 VND to 23,250 VND/USD.
List of banks with credit rating upgraded by Moody's
This list was announced shortly after Moody upgraded Vietnam's national rating by one level, from Ba3 to Ba2, with a Stable outlook.
Specifically, Moody's has upgraded the long-term local and foreign currency issuer and deposit ratings of 8 banks by 1 level and raised 1 level for counterparty risk ratings in local and foreign currencies and risk assessment. partners with 7 banks.
The banks updated in this ranking are An Binh Commercial Joint Stock Bank (ABBank), Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Joint Stock Commercial Bank for Post and Telecommunications LienVietPostBank (LienVietPostBank), Orient Commercial Joint Stock Bank (OCB), Saigon - Hanoi Commercial Joint Stock Bank (SHB), Southeast Asia Commercial Joint Stock Bank (SeABank), Tien Phong Commercial Joint Stock Bank (TPBank), Agricultural Bank Vietnam Industry and Rural Development (Agribank), Vietnam International Bank (VIB), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and Vietnam Maritime Commercial Joint Stock Bank (MSB).
Which, 8 banks have been upgraded to issuer ratings and long-term local and foreign currency deposits, including Vietcombank, BIDV, OCB, SeABank, TPBank, Agribank, VIB, and VietinBank. Seven banks were upgraded in terms of counterparty risk in local and foreign currencies and counterpart risk assessment, including BIDV, Agribank, VietinBank, ABBank, LienVietPostBank, SHB, and MSB.