Interbank interest rates surged on temporary liquidity issues at several banks along with a credit quota expansion 

- In the first week of October, interbank interest rates surged on liquidity constraints in the banking system following temporary issues at several local banks and a credit quota expansion announcement. Notably, the overnight (ON) interbank interest rate reached around 10% at times on October 4 and 5. 

- However, interbank interest rates quickly eased to around 6.5% on October 6 as liquidity recovered partly thanks to the State Bank of Vietnam’s (SBV) VND injection via open market operation (OMO). The SBV net injected VND37tn (USD1.6bn) on October 4 and 5.

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