Banking & Finance

Interbank interest rates have continued to increase despite the State Bank of Vietnam’s net injection of capital. This appears to put a strain on liquidity in the banking system. In early August, VND85 trillion ($3.64 billion) of bills will mature, which will help system liquidity regain some balance.

FiinRatings announced on July 26 that it had established a partnership with S&P Global Ratings. The latter will expand the scope of technology transfer to the former not only in terms of professional expertise but also in governance and operations, to meet global standards and practices.

According to VnDirect, profits of large-cap and small-cap stocks increased 25 per cent and 7.9 per cent, respectively, in the second quarter of this year. Profits in the financial services group fell 100.7 per cent, primarily due to the stock market tumbling over the past few months, a sharp fall in brokerage and proprietary trading, and margin lending factors.

The State Capital Investment Corporation (SCIC) plans to sell capital in 101 businesses this year, 13 more than in 2021. To complete the divestment plan for the 2021-2025 period, it is finalizing its business strategy for the 2021-2030 period and vision to 2035, as well as its restructuring project for the 2021-2025 period.

Vietnam’s corporate bond market has seen positive changes from a series of corrective measures by management units. Bonds have been issued again since May, while the volume issued in June was 55 per cent higher than in April.

As central banks around the world move to raise interest rates, Vietnamese authorities have no intention of following suit in the near future. According to analysts, raising interest rates in Vietnam at this time would not necessarily be a special medicine and may actually cause side effects.