Tuesday, April 13, 2021 6:19:02 PM - Markets closed
VN-INDEX 1,248.33 -4.12/-0.33%
HNX-INDEX 292.19 -3.35/-1.13%
UPCOM-INDEX 83.13 -0.97/-1.15%
Interest rates remain at lowest levels
Vietnam News - 3/18/2021 2:37:09 PM
 (0 ratings. You must sign in to rate.)
Though some banks increased their deposit interest rates early this month, it is not a common trend and the rate currently is still at the lowest level it has been in many years.
With the liquidity of the banking system abundant and interest rates on the interbank market still at a low level, some banks unexpectedly increased their rates at the beginning of March.
Techcombank has applied higher savings interest rates of 0.5-0.6 percentage points for many terms since March 1. Specifically, the rates for six-month and 12-month deposits rose to 4.4-4.7 per cent and 5.1-5.4 per cent per year, respectively.
VPBank also listed new deposit rates for individual customers from March 2, with rises from 0.2 percentage points for terms less than six months.
At ACB, the two- and three-month deposit rates were also increased by 0.1 percentage point.
Despite these movies, in general, the deposit interest rates at most other banks haven’t changed much compared to last month and remain at a low level.
The rates were kept unchanged from the previous month among State-owned commercial banks including Vietcombank, Vietinbank, BIDV and Agribank, and in the group of joint-stock commercial banks such as LienVietPostBank, SeABank and TPBank.
Several other banks even decreased their rates. At BacABank, for example, the rates for one-month to five-month deposits fell by 0.2 percentage points to 3.6 per cent per year while six-month to 12-month deposits also saw declining rates of 0.3 percentage points.
SCB also reduced the rate by 0.5 percentage points for 12-month deposits to 6.8 per cent per year.
According to experts, there is not much room to further reduce savings interest rates as banks must ensure real positive interest rates compared to inflation to attract depositors.
They explained while the inflation rate has been increasing since the first months of this year, demand for credit is also forecast to surge rapidly this year when the economy recovers. Interest rates will likely increase as a result.
KB Vietnam Securities Company said the interbank interest rate and Government bond yields are hitting the bottom while the deposit interest rate is also dropping to the lowest level in the past 15 years. The company forecast the interest rate level is likely to bottom out in the first half of 2021 and increase slightly again in the second half of 2021.
Võ Trí Thành, a member of the National Financial and Monetary Policy Advisory Council, said it was very difficult to further lower interest rates because economic recovery will lead to an increase in demand for credit.
The management of monetary policy this year must be very flexible, Thành noted, adding if the monetary policy was too tight, it could hamper the economic recovery; but vice versa, if the policy is too loose, the country would face financial risks and high inflation.
Financial risks have been seen in recent months when many investors spent on securities and real estate instead of depositing at banks due to low interest rates, Thành said, adding it was best to maintain the interest rate level.
Though there were no signs of a bubble currently, Thành warned it could occur if interest rates were cut further. — VNS
Read original article here
Newer News
12/04 Reference exchange rate up 4 VND at week’s beginning
08/04 Reference exchange rate down 8 VND on April 8
05/04 Reference exchange rate down 5 VND at week’s beginning
30/03 Reference exchange rate up 6 VND on March 30
26/03 Reference exchange rate up 12 VND
23/03 Reference exchange rate down 7 VND on March 23
Older News
18/03 Reference exchange rate revised down on March 18
17/03 Reference exchange rate stays unchanged
16/03 Reference exchange rate up 4 VND
13/03 Reference exchange rate down 21 VND on March 12
09/03 Reference exchange rate continues going up
20/01 Reference exchange rate down 4 VND on January 20
12/01 Reference exchange rate up 13 VND
06/01 Reference exchange rate up 2 VND on January 6
30/12 Reference exchange rate down 7 VND
28/12 Reference exchange rate down 3 VND at week’s beginning
Newsletter Signup
Top Stories
CPTPP gives boost to Vietnamese exports
Hanoi: March CPI down 0.21 percent against February
Goal of 6.5 percent growth rate – big challenge: GSO head
Reference exchange rate up 12 VND
Vietnam maintains positive outlook for economic recovery in 2021: WB
Market Update
Last updated at 3:05:58 PM
VN-INDEX 1,248.33 -4.12/-0.33%
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.