HCM CITY — Despite interest rate cuts by commercial banks, deposits by retail customers have continued to increase due to a lack of alternative asset classes. The central bank placed the lender under “special control” to head off a contagion that could affect the entire banking industry. Despite the decrease in interest rates, banks’ deposits have kept rising, resulting in a surplus of over VNĐ1 quadrillion. This has led to the central bank issuing treasury bills to mop up the liquidity and ensure there is no significant impact on interest rates. He has instructed the central bank to have flexible and efficient monetary policies to promote growth and ensure safety of the credit system.

Source: Viet Nam News November 29, 2023 03:58 UTC