Developing the Interbank Market in Vietnam

The interbank market is where capital trading activities take place between credit institutions such as commercial banks, non-bank financial institutions and the central bank, to ensure liquidity, Compulsory reserves and short-term currency trading. In fact, the operation of the interbank market has a great influence on the operation of the national and even global financial system. Interest rates and transaction volume on the interbank market are the basis for determining interest rates and the amount of credit capital that commercial banks provide to the economy, so it will affect the total amount of investment capital. , affecting the income, stability and growth of the entire economy. Therefore, the interbank market operating effectively is the top goal in state management of the interbank market. That is to increase short-term capital circulation among market participants to ensure low liquidity costs, minimize participants' risks and the market becomes an effective channel for transmitting regulatory signals. Central bank's monetary policy to the economy. The article focuses on basic contents: theory of the interbank market, the role of the interbank market, the current state of interbank market development in Vietnam in the period 2019-2023 and from there, introduces come up with solutions to develop the interbank market in Vietnam in the coming time.