Friday, December 9, 2022 2:22:25 AM - Markets open
VN-INDEX 1,050.53 +9.51/+0.91%
HNX-INDEX 215.37 +5.44/+2.59%
UPCOM-INDEX 71.62 +1.17/+1.66%
Deposit interest rate to stay low as banks keep borrowing costs down
Vietnam News - 10/5/2021 1:49:33 PM
 (0 ratings. You must sign in to rate.)
Commercial banks' deposit interest rate has remained low at the beginning of October, the Vietnam News Agency reported.
Deposit interest rate among Vietnam Bank for Agriculture and Rural Development (Agribank), Bank for Investment and Development of Vietnam (BIDV), Vietcombank and VietinBank - the country's largest commercial banks or the big 4 - stayed in the range of 5.5-5.6 per cent for 12-month, 4 per cent for 6-9-month and 3,1-3,4 per cent for 1-3 month term deposits. 
Other commercial banks have been offering more attractive rates at 5.4-7.1 per cent, notable among them were Techcombank, ACB and MSB  at 7.1 per cent annually for 12-13-month deposits at a minimum of VNĐ30 billion (ACB), VNĐ200 billion (MSB) and VNĐ999 billion (Techcombank).
Meanwhile, LienVietPostBank, MB Bank, VietABank, HDBank and SCB also offered decent rates from 6.8-6.99 per cent for 12-month deposits with a minimum around ranging from VNĐ200-300 billion. 
The low interest rate for deposits is part of an effort to lower lending rates for consumers and businesses, which have been struggling during the pandemic. 
However, even with lower rates, the banks have found it difficult to find borrowers in the last two months as demand plummeted during numerous lockdowns in major cities and provinces across the country, according to Nguyễn Tuấn Anh, head of the Credit Department of Economic Sectors under the State Bank of Vietnam (SBV).
Anh said he expected demand to recover once lockdowns have been relaxed or lifted completely. 
"The country recorded a 7.18 per cent in credit growth by the end of August since the beginning of the year. It's still possible for us to meet the 12 per cent yearly target by the end of the year but it will take sound and flexible credit policies," he said. 
Experts said there was still room to lower the borrowing rates but by itself, it won't be enough to help businesses recover.
"With plenty of liquidity in the system, we can go lower still on the borrowing rate. While this is especially helpful for many businesses who have been borrowing to speed up their recovery it doesn't help those who have not been able to secure new capital," said Dr Nguyễn Trí Hiếu, saying a lower rate did not mean the banks were cutting corners when it comes to safety. 
Commercial banks have slashed more than VNĐ8.8 trillion (US$386 million) in interest rates from July 15 to August 31 in support of businesses that have been severely affected by the novel coronavirus, according to the SBV. — VNS
Read original article here
Newer News
07/12 Banks admitting weak ones proposed to get higher foreign ownership restrictions
29/11 VPBank receives loans from large financial institutions, affirming its reputation
29/11 Banks gain big profits from forex trading
29/10 Most banks expect better business performance in 2022
24/10 Challenges for banks in recovering bad debts
13/10 Increased pressure to raise interest rates
07/10 Investors warned of the possibility of corporate bond default
28/09 Commercial banks raise deposit rates after SBV’s adjustment
28/09 Foreign investment disbursement hits record high in nine months
23/09 Reference exchange rate up 8 VND
Older News
01/10 Official: Vietnam could achieve trade balance this year
27/09 Businesses’deposits at banks surge : Is it good or bad ?
23/09 Reference exchange rate up 7 VND on September 23
21/09 Finance Minister affirms State budget sufficiency
17/09 Reference exchange rate up 9 VND
13/09 Reference exchange rate down 5 VND at week’s beginning
11/09 Banks tighten loans for real estate businesses
08/09 State Bank agrees to extend debt rescheduling for six months
08/09 Banks continue lower deposit interest rates
06/09 Reference exchange rate down 3 VND after National Day holiday
Newsletter Signup
Top Stories
PM asks to foster macroeconomic management, firm up confidence of people and businesses
Banks gain big profits from forex trading
Pharmaceutical firms report positive results in Q3
Petrol prices surge in latest adjustment
Investors worried as speculative stocks plummet
Market Update
Last updated at 3:05:04 PM
VN-INDEX 1,050.53 +9.51/+0.91%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.