The transmission from the interest rate policy of the State bank to the deposit and lending rates at Bank for Agriculture and Rural Development of Vietnam  6
react faster than interest rate movements, which increases the elasticity of money demand for interest rates, accelerates the circulation of capital flows, makes money supply and demand difficult to predict. more informed, the transmission mechanism of monetary policy is more sensitive. To perfect the information system to support the planning and implementation of monetary policy, the SBV needs to implement solutions such as promoting joint ventures, linkages and cooperation with domestic and foreign organizations in business, research and development. develop banking services to quickly access new technologies in line with international practices and standards. Enlist the financial and technical support of international organizations to modernize technology and expand banking services.
5.4.2 Solutions from the Government
5.4.2.1 Synchronous coordination of fiscal and monetary policies
In order to enhance the effectiveness of the implementation of monetary and fiscal policies, it is necessary to have a smooth and synchronous combination between the two policies to enhance the implementation efficiency of each policy.
 Establishing a regular and continuous relationship in the process of making and implementing monetary and fiscal policies between the Ministry of Finance and the State Bank. The State Bank must be provided with accurate and timely information from the Ministry of Finance on the amount of capital mobilization and lending of nonbudget funds in order to control the total means of payment of the entire economy. Statistics and reports on public finance issues, especially plans to raise capital to cover the state budget deficit, must be promptly provided by the Ministry of Finance to the SBV. In contrast, the State Bank must provide information on interest rates, exchange rates, inflation, and available capital of the commercial banking system to the Ministry of Finance.
 Amending and supplementing legal documents on the state budget and the State Bank in the direction of ensuring the independence of each policy.
 To encourage the use of noninflationary shortfall financing through the issuance of bonds and bills as a basis for the development of the open market and the SBV's discounting and rediscounting tools.
5.4.2.2 Perfecting the basic conditions towards operating monetary policy according to the mechanism of inflation targeting
 Gradually build independence for the State Bank. Allowing the State Bank to be more proactive in regulating the money supply to suit the requirements of the economy, not to meet the needs of the State budget and the Government. In the implementation of monetary policy, the State Bank must be selfdetermined in using monetary policy tools to improve the efficiency of using such tools.
 Focus on studying the monetary policy transmission mechanism in Vietnam to clearly determine the time lag, mode and impact level of policies implemented by the State Bank on monetary policy objectives.
5.4.2.3 Completing the banking system
The improvement of monetary policy in Vietnam cannot be separated from the process of perfecting the banking system in general and the organizational and operating apparatus of the State Bank in particular. This is reflected in the fact that the Government must unify and synchronize the issued relevant laws and legal documents, thereby ensuring the effectiveness of the entire system of regulatory documents of the industry. The elaboration and promulgation of sublaw documents should be done quickly and in a timely manner.
5.5 Limitations of the topic and directions for further research
 The limitation of the study is that the access to data such as the number of observations is not much in space and time. Therefore, the next research direction is to expand the scope of research on the transmission from the interest rate policy of the State Bank to the commercial banking system in Vietnam. Consider different periods such as precrisis, postcrisis, the impact of the process of integration and monetary liberalization on interest rate passthrough.
 The transmission of all SBV's operating interest rates such as interbank interest rates, LSCBs, etc. has not been studied in depth to the deposit and lending rates of all terms of Agribank , so it has not been studied in depth. covers all transmission results. Therefore, it is necessary to study the interest rate transmission in more depth and detail with many different terms and different interest rate subjects such as interbank interest rates, LSCBs, interest rates.
mobilize all terms, interest rates for mortgage loans, interest rates for business loans, interest rates for personal loans,...
 The cause of the shortterm incomplete and asymmetrical passthrough has not been explored, ignoring the impact of macroeconomic factors and considering the SBV's monetary policy to be transparent. As official interest rates and money market rates change, banks may not find it profitable to adjust their rates immediately. For example, retail interest rates will be less volatile in inelastic markets and the demand curve for retail products in banks may be less elastic in the short run than in the long run. In general, banks face fixed cost adjustments in order to adjust their rates in a timely manner (Hannan and Berger [1991]; Bondt [2002]). Therefore, in further studies, it is necessary to measure interest rate passthrough under varying cost conditions to see the level of passthrough more accurately. At the same time,
Conclusion of chapter 5
Chapter 5 summarizes the main results studied in Chapter 4, conducts monetary policy of the State Bank in the coming time and offers solutions on Agribank's interest rate policy in order to increase the level and speed of interest rate passthrough. At the same time, some limitations of the study and suggestions for future research directions are also given.
REFERENCES
VIETNAMESE DOCUMENTS
1. Report on business results of Agribank 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015.
2. Dinh Thi Thu Hong and Phan Dinh Manh, 2013. “Effectiveness of monetary policy through the interest rate transmission channel.” Journal of Development and Integration No. 12(22) SeptemberOctober 2013.
3. Nguyen Phi Lan, 2010. “Monetary transmission mechanism from the perspective of quantitative analysis”. Banking Magazine No. 18/2010.
4. Nguyen Thi Kim Thanh, 2011. “Interest rate policy: Theoretical and practical basis”, Banking Strategy Institute, State Bank.
5. Nguyen Thi Ngoc Trang and Nguyen Huu Tuan, 2014, “Monetary policy transparency and retail interest rate passthrough in Vietnam”, Journal of Development & Integration No. 15 (25) – MarchApril/ 2014.
6. VCBS Research and Analysis Department, “Macro Report and Stock Market 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015”.
ENGLISH DOCUMENT
1. Beng Soon Chong, MingHua Liu, Keshab Shrestha, 2005. “ Monetary transmission via the administered interest rates channel”. Journal of Banking & Finance.
2. Bondt, 2002, “Retail bank interest rate passthrough: New evidence from the Euro area level”. Working paper No.136, European Central Bank Working Paper Series.
3. Gambacorta L and S Iannotti (2007): “Are there asymmetries in the response of bank interest rates to monetary shocks?”, Applied Economics.
4. Hannan, Timothy H. 1991. “Bank Commercial Loan Markets and the Role of Market Structure: Evidence from Surveys of Commercial Lending.” Journal of Banking and Finance.
5. Hofmann, B., & Mizen, P. (2004). “Interest rate passthrough and monetary transmission: Evidence from individual financial institutions' retail rates.”. Economica.
6. Kleimeier S., Sander H., 2005, “Expected versus unexpected monetary policy impulses and interest rate pass through in eurozone's retail banking markets”. Journal of Banking and Finance.
7. Lim, GC (2001). “Bank interest rate adjustments: Are they asymmetric?” Economic Record.
8. MingHua Liu, Dimitri Margaritis, Alireza TouraniRad, 2007 “Monetary policy transparency and passthrough of retail interest rates”, Journal Banking & Finance.
9. Rustam Jamilov, Balazs Egert (2014)," Interest rate passthrough and monetary policy asymmetry: A journey into the Caucasian black box", Journal of Asian Economics.
10. Scholnick, B. (1996) “Asymmetric Adjustment of Commercial Bank Interest Rates: Evidence from Malaysia and Singapore”. Journal of International Money and Finance.
The variables of deposit interest rate, lending interest rate
_1M 
_6M 
_12M 
_18M 
_24M 
SMALL 
TDH 

Mean 
8.993021 
9.666979 
10.04052 
9.738542 
9.755000 
12,98328 
14.08740 
Median 
8.140000 
8,640000 won 
9,650000 won 
9,730000 won 
9,730000 won 
11.20000 won 
12.72500 
Maximum 
17.50000 won 
17.50000 won 
17.50000 won 
17.50000 won 
17.50000 won 
21,00000 won 
21,00000 won 
Minimum 
4,000000 
5.300000 won 
6,000000 
6.2000000 
6,30000 won 
9,000000 
10,50000 won 
Std. Dev. 
3.844662 
3.297293 
3.038562 
2.452714 
2.403539 
3.456668 
3.257457 
Skewness 
0.415382 
0.649823 
0.601143 
0.728301 
0.808288 
0.832536 
0.655379 
Kurtosis 
2.016644 
2.464302 
2.605022 
3.542912 
3.690190 
2.343457 
2.082540 
JarqueBera 
6.628637 
7.904205 
6.405992 
9.665761 
12.35871 
12.81404 
10.23927 
Probability 
0.036359 
0.019214 
0.040640 
0.007964 
0.002072 
0.001650 
0.005978 
Sum 
863.3300 
928,0300 
963.8900 
934.9000 
936.4800 
1246,395 
1352,390 
Sum Sq. Dev. 
1404.235 
1032.854 
877.1215 
571.5014 
548.8148 
1135,112 
1008.047 
Observations 
96 
96 
96 
96 
96 
96 
96 
Maybe you are interested!
 Introduction To The Bank For Agriculture And Rural Development Of Vietnam
 PassThrough From Rediscount Rate To Deposit And Lending Rates
 Choosing The Optimal Lag For The Variables In The Model Table 4.8: Optimal Latency Testing
 The transmission from the interest rate policy of the State bank to the deposit and lending rates at Bank for Agriculture and Rural Development of Vietnam  7
 The transmission from the interest rate policy of the State bank to the deposit and lending rates at Bank for Agriculture and Rural Development of Vietnam  8
Variables of refinancing interest rate, rediscount interest rate
Mean 
TCV 9.119792 
Term 7.145833 
Median 
8.000000 
6,000000 
Maximum 
150000 won 
13,00000 won 
Minimum 
6,50000 won 
4.50000 won 
Std. Dev. 
2.880739 
2.937880 
Skewness 
1.014121 
1.023415 
Kurtosis 
2.506139 
2.491016 
JarqueBera 
17.43066 
17.79431 
Probability 
0.000164 
0.000137 
Sum 
875.5000 
686.0000 won 
Sum Sq. Dev. 
788.3724 
819.9583 
Observations 96 96
Correlation matrix
_1M _6M _12M _18M _24M Bank TDH TCV TCK
_1M 1 0.98600025... 0.97755807... 0.95944948... 0.96010052... 0.92831843... 0.88714445... 0.85451099... 0.85341449...
_6M 0.98600025... 1 0.98338146... 0.95805052... 0.95722028... 0.93106680... 0.89175930... 0.86680512... 0.86454221...
_12M 0.97755807... 0.98338146... 1 0.97135542... 0.96997002... 0.93104467... 0.90218586... 0.88115188... 0.88360978...
_18M 0.95944948... 0.95805052... 0.97135542... 1 0.99869664... 0.88771795... 0.85842502... 0.82539956... 0.81836423...
_24M 0.96010052... 0.95722028... 0.96997002... 0.99869664... 1 0.89112600... 0.85844532... 0.83071860... 0.82370299...
NH 0.92831843... 0.93106680... 0.93104467... 0.88771795... 0.89112600... 1 0.97820110... 0.89211298... 0.90256330...
TDH 0.88714445... 0.89175930... 0.90218586... 0.85842502... 0.85844532... 0.97820110... 1 0.86147700... 0.87114330...
TCV 0.85451099... 0.86680512... 0.88115188... 0.82539956... 0.83071860... 0.89211298... 0.86147700... 1 0.98795120...
TCK 0.85341449... 0.86454221... 0.88360978... 0.81836423... 0.82370299... 0.90256330... 0.87114330... 0.98795120... 1
1M
Null Hypothesis: _1M has a unit root Exogenous: Constant
Lag Length: 1 (Automatic  based on SIC, maxlag=12)
tStatistics Prob.*
Augmented DickeyFuller test statistic 2.027167 0.2749
Test critical values: 1% level 
3.501445 

5% level 
2.892536 

10% level 
2.583371 

*MacKinnon (1996) onesided pvalues. 

6M 

Null Hypothesis: _6M has a unit root Exogenous: Constant Lag Length: 1 (Automatic  based on SIC, maxlag=12 
) 
tStatistics Prob.*
Augmented DickeyFuller test statistic 2.357899 0.1565
Test critical values: 1% level 
3.501445 

5% level 
2.892536 

10% level 
2.583371 

*MacKinnon (1996) onesided pvalues. 

12M 

Null Hypothesis: _12M has a unit root Exogenous: Constant Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 
tStatistics Prob.*
Augmented DickeyFuller test statistic 1.392710 0.5828
Test critical values: 1% level 
3,500669 

5% level 
2.892200 

10% level 
2.583192 

*MacKinnon (1996) onesided pvalues. 

18M 

Null Hypothes is : _18M has a unit root Exogenous : Cons tant Lag Length: 0 (Autom atic  bas ed on SIC, m axlag=12 
) 

tStats tic 
Prob.* 

Augm ented DickeyFuller tes ts tatis tic 
1.563726 
0.4971 
Test t critical values : 1% level 
3,500669 

5% level 
2.892200 

10% level 
2.583192 
*MacKinnon (1996) ones ided pvalues .
LSHD 24M
Null Hypothesis: _24M has a unit root Exogenous: Constant
Lag Length: 0 (Automatic  based on SIC, maxlag=12)
tStatistics Prob.*
Augmented DickeyFuller test statistic 1.615662 0.4707
Test critical values: 1% level 
3,500669 

5% level 
2.892200 

10% level 
2.583192 

*MacKinnon (1996) onesided pvalues. 

SMALL LSCV 

Null Hypothesis: NH has a unit root Exogenous: Constant Lag Length: 1 (Automatic  based on SIC, maxlag=12 
) 
tStatistics Prob.*
Augmented DickeyFuller test statistic 1.826436 0.3657
Test critical values: 1% level 
3.501445 

5% level 
2.892536 

10% level 
2.583371 

*MacKinnon (1996) onesided pvalues. 

LSCV TDH 

Null Hypothesis: TDH has a unit root Exogenous: Constant Lag Length: 1 (Automatic  based on SIC, maxlag=12 
) 
tStatistics Prob.*
Augmented DickeyFuller test statistic 2.066375 0.2587
Test critical values: 1% level 
3.501445 

5% level 
2.892536 

10% level 
2.583371 

*MacKinnon (1996) onesided pvalues. 

LSTCV 

Null Hypothesis: TCV has a unit root Exogenous: Constant Lag Length: 3 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
2.570517 
0.1028 
Test critical values: 1% level 
3.503049 

5% level 
2.893230 

10% level 
2.583740 
*MacKinnon (1996) onesided pvalues.
Null Hypothesis: TCK has a unit root Exogenous: Constant Lag Length: 2 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
2.265776 
0.1852 
Test critical values: 1% level 
3.502238 

5% level 
2.892879 

10% level 
2.583553 

*MacKinnon (1996) onesided pvalues. 

D(1M) 

Null Hypothesis: D(_1M,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
12.58569 
0.0000 
Test critical values: 1% level 
4.059734 

5% level 
3.458856 

10% level 
3.155470 

*MacKinnon (1996) onesided pvalues. 

D(_6M) 

Null Hypothesis: D(_6M,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
11.58997 
0.0000 
Test critical values: 1% level 
4.059734 

5% level 
3.458856 

10% level 
3.155470 

*MacKinnon (1996) onesided pvalues. 

D(_12M) 

Null Hypothesis: D(_12M,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
15.07362 
0.0000 
Test critical values: 1% level 
4.059734 

5% level 
3.458856 

10% level 
3.155470 
*MacKinnon (1996) onesided pvalues.
Null Hypothesis: D(_18M,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
14.64223 
0.0000 
Test critical values: 1% level 
4.059734 

5% level 
3.458856 

10% level 
3.155470 

*MacKinnon (1996) onesided pvalues. 

D(_24M) 

Null Hypothesis: D(_24M,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
14,86575 
0.0000 
Test critical values: 1% level 
4.059734 

5% level 
3.458856 

10% level 
3.155470 

*MacKinnon (1996) onesided pvalues. 

D(NH) 

Null Hypothesis: D(NH,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 2 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
7.787872 
0.0000 
Test critical values: 1% level 
4.062040 

5% level 
3.459950 

10% level 
3.156109 

*MacKinnon (1996) onesided pvalues. 

D(TDH) 

Null Hypothesis: D(TDH,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 0 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
12.64119 
0.0000 
Test critical values: 1% level 
4.059734 

5% level 
3.458856 

10% level 
3.155470 
*MacKinnon (1996) onesided pvalues.
Null Hypothesis: D(TCV,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 1 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
10.39409 
0.0000 
Test critical values: 1% level 
4.060874 

5% level 
3.459397 

10% level 
3.155786 

*MacKinnon (1996) onesided pvalues. 

D(TCK) 

Null Hypothesis: D(TCK,2) has a unit root Exogenous: Constant, Linear Trend Lag Length: 2 (Automatic  based on SIC, maxlag=12 
) 

tStatistics 
Prob.* 

Augmented DickeyFuller test statistic 
9.973895 
0.0000 
Test critical values: 1% level 
4.062040 

5% level 
3.459950 

10% level 
3.156109 
*MacKinnon (1996) onesided pvalues.
APPENDIX 03: ROAD INSPECTION
1M_TCV
AR DL Bounds Test
Date: 03/29/16 Time: 21:39 Sample: 5 96
Included observations: 92
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
19.3482 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
6M_TCV
AR DL Bounds Test
Date: 03/29/16 Time: 21:43 Sample: 3 96
Included observations: 94
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
13.47206 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
12M_TCV
ARDL Bounds Test
Date: 03/29/16 Time: 21:45 Sample: 5 96
Included observations: 92
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
35.99821 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
24M_TCV
AR DL Bounds Test
Date: 03/29/16 Time: 21:47 Sample: 13 96
Included observations: 84
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
5.606299 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
NH_TCV
AR DL Bounds Tes t
Date: 03/29/16 Time: 21:48 Sam ple: 6 96
Included obs ervations : 91
Null Hypothes is : No longrun relations hips exis t
Test t Stats tic 
Value 
k 
Fs tatis tic 
24.48493 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
1M_TCK 

ARDL Bounds Test 
Date: 03/29/16 Time: 21:50 Sample: 5 96
Included observations: 92
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
9.505849 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
6M_TCK 

AR DL Bounds Test 
Date: 03/29/16 Time: 21:53 Sample: 3 96
Included observations: 94
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
13.32612 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
18M_TCK 

ARDL Bounds Test 
Date: 03/29/16 Time: 21:54 Sample: 3 96
Included observations: 94
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
15.52214 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 
24M_TCK
ARDL Bounds Test
Date: 03/29/16 Time: 21:55 Sample: 14 96
Included observations: 83
Null Hypothesis: No longrun relationships exist
Test Statistic 
Value 
k 
Fstatistics 
17.21293 
first 
Critical Value Bounds 

Significance 
I0 Bound 
I1 Bound 
ten% 
3.02 
3.51 
5% 
3.62 
4.16 
2.5% 
4.18 
4.79 
first% 
4.94 
5.58 