Banks hike deposit rates for liquidity

Live Quote: On

RSS

My Page | Contact Us

RSS

RSS

Company A-Z | Stock Screener | My Portfolios | Streaming Quotes | Technical Analysis

Investing Tools

Useful Links

Sunday, June 2, 2024 10:54:43 AM - Markets open

VN-INDEX

1,261.72

-4.60/-0.36%

HNX-INDEX

243.09

-0.92/-0.38%

UPCOM-INDEX

95.88

+0.08/+0.08%

Banks hike deposit rates for liquidity

Vietnam News - 1/23/2017 1:04:39 PM

(0 ratings. You must sign in to rate.)

Print |

Add To Favorites |

Email |

RSS

Recently banks had cut deposit interest rates in response to the State Bank of Việt Nam’s appeal to support the economy.

However, during the run-up to Tết many of them have had to put up their rates again to sustain liquidity.

Sacombank has hiked the rates on two- and six-month deposits by 0.1 and 0.2 percentage points to 5 per cent and 5.9 per cent.

DongABank hiked the rates on one- and six-month deposits by 0.1 and 0.3 points to 5 per cent and 5.5 per cent.

Some other banks have also increased the rates by 0.1-0.3 points.

Besides, banks are also scrambling to launch lucrative promotion programmes to attract deposits.

Vietinbank is offering bonuses of nearly VNĐ8 billion to depositors, SHB has earmarked VNĐ7.2 billion.

Market observers said many banks face liquidity pressure though the State Bank of Việt Nam is pumping in a lot of money through open market operations (OMO).

A major part of almost VNĐ55 trillion were absorbed by the banks as of January 16.

The observers attributed the low liquidity to the fact that banks had to out a lot of money to enterprises and financial institutions, something that often happens a few weeks before Lunar New Year.

But other analysts dismiss the claim of low liquidity, pointing to banks’ transactions in the last few months of 2016. Most lenders had enough liquidity, with some even having plentiful cash, that they were ready to meet the payment demands of the market.

This was also proved by the fact that interest rates kept falling on the inter-bank market.

The liquidity helped the government successfully issue bonds totally worth VNĐ281 trillion.

Newer News
27/05	Experts predict deposit interest rates to rise 1 percentage point in H2
22/05	Finance ministry works with S&P on sovereign credit rating
13/05	Central bank's bid to stabilise gold market hits snag
08/05	Proposal of compulsory non-cash payment for gold transactions controversy
08/05	Three bidders win gold auction at high price
06/05	Bank deposits decline for first time in over two years
06/05	SJC gold price hits all-time high
24/04	Two bidders win the first gold auction this year
24/04	HCM City seeks to draw remittances in infrastructure
24/04	HCM City could issue bonds for overseas Vietnamese to fund infrastructure: conference

Older News
23/01	Central bank eyes lower bank lending rates
21/01	Cash payment declines by 2% in 6 years
20/01	VN government turns focus to long-term bonds
20/01	HCMC banks rush to lure overseas remittances
19/01	M&A in banking sector perking up for 2017
19/01	FOLs will help banks revamp
19/01	Banking system liquidity under pressure until Tết ends
17/01	SBV aims to hold inflation under 4% in 2017
17/01	Banks post higher performance for 2016
16/01	SMEs’ lending must be reported to SBV quarterly

Newsletter Signup

Top Stories

	VN adds over 110,000 new securities accounts in April, bringing total to 7.7 million
	Cautious rise amid low supply and cash flow, investors advised to monitor resistance area
	Interest rates to rise but not have major impact on stock market: economist
	Businesses concerned about rising exchange rate pressure
	Gold bar auction to be resumed after 11 years of suspension