Tuesday, March 19, 2024 11:22:46 AM - Markets open
VN-INDEX 1,245.06 +1.50/+0.12%
HNX-INDEX 237.13 +0.45/+0.19%
UPCOM-INDEX 90.53 +0.21/+0.23%
Bank deposit interest rates keep falling
Vietnam News - 5/9/2023 3:11:32 PM
 (0 ratings. You must sign in to rate.)
Banks have been steadily cutting deposit interest rates, which have reached around 8 per cent, a move aimed at reducing lending rates to support businesses.
 
The highest listed rate for 12-month deposits is around 8 per cent per year.
 
Larger private banks have cut the 12-month rate to below 8 per cent. SHB, Techcombank, ACB, and MB pay between 7.3 per cent and 7.9 per cent.
 
The four State-owned banks – Agribank, BIDV, Vietcombank, and Vietinbank – continue to pay the lowest rates in the market, around 6 per cent for six to less than 12 months and 7.2 per cent for 12 months.
 
Smaller banks have also reduced rates significantly since last month.
 
For 12 months, Bắc Á Bank’s rate has fallen from 8.6 per cent to 8.3 per cent; KienlongBank’s from 8.5 per cent to 8.2 per cent; and SaigonBank’s from 8.3 per cent to 8 per cent.
 
Deposit interest rates have been creeping downwards, especially after the central bank cut the operating interest rate on March 15 and April 3.
 
At the end of last year, almost all private banks offered more than 9 per cent for 12-month deposits.
 
Smaller banks paid 10 per cent or more.
 
The high deposit interest rates pushed up lending rates to 13-14 per cent, putting huge pressure on businesses.
 
According to VNDirect Securities Company, deposit interest rates will continue to fall until the end of 2023, tracking sluggish credit demand due to a slump in economic growth and the property market.
 
It also said the Government would increase public spending this year to pump more money into the economy.
 
It expected the 12-month deposit rate to fall to around 7 per cent by the end of 2023.
 
Lower lending rates
 
The high lending interest rates are burdening businesses amid declining export orders and weak domestic demand.
 
But the falling deposit interest rates have raised hopes of a drop in lending rates.
 
At a meeting last week, central bank deputy governor Đào Minh Tú urged banks to cut operating costs and improve administrative procedures to reduce lending interest rates.
 
Vietcombank reduced lending rates by 0.5 percentage points last week.
 
Earlier, Agribank cut them by 1.5 percentage points for đồng loans and 1 percentage point for dollar loans.
 
According to the central bank, deposit interest rates have decreased by 1-1.2 percentage points since the end of last year and loan interest rates by 0.5-0.65 percentage points.
 
In a related move, the central bank has instructed commercial banks to roll over debts and keep debt classifications unchanged until June 2024 to ease the pressure on borrowers. — VNS
 
Read original article here
 
Newer News
18/03 Việt Nam to revise gold market regulations: amendments to Decree 24/2012/NĐ-CP underway
18/03 Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
15/03 PM urges further rate cuts, improved credit access to remove obstacles, promote growth
14/03 Insurance premium revenue rebounds in the first two months
14/03 Foreign exchange rate cools after central bank’s intervention
14/03 Lukewarm reception for VNĐ120 trillion credit package
14/03 Banks remain reluctant in disclosing interest rates
14/03 Ministry of Finance to scrutinise insurance sales via credit institutions and foreign bank branches
14/03 Gold drops as traders cash in earlier gains
13/03 Corporate bond market quiet in February
Older News
07/05 Central bank issues policies to support businesses
25/04 Credit institutions allowed to reschedule repayment terms
24/04 Việt Nam’s currency stable despite global uncertainties
10/04 Overnight interbank interest rate surges in week
10/04 Việt Nam’s banking system shows signs of money surplus
04/04 HoREA proposes credits for real estate firms to pay for maturing bonds
01/04 SBV asks to issue revised decree on foreign ownership cap at VN banks
01/04 Vietcombank must maintain key role in Việt Nam's banking system: PM
30/03 SBV's draft regulations encourage banks to support corporate bond market
30/03 Banks need drastic solutions to gain growth in 2023
 
Newsletter Signup
Top Stories
Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
VN-Index corrects, liquidity stays high
Stock Market Upgrade Journey: overcoming hurdles and reaching new heights
Corporate bond market quiet in February
Losses in bank stocks weigh on market sentiment
Market Update
Last updated at 11:15:01 AM
VN-INDEX 1,245.06 +1.50/+0.12%
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...
Portfolio
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.