Want to be in the loop?
subscribe to
our notification
Business News
BANKS CUT DEPOSIT RATES
Many banks have slashed deposit interest rates by 20-40 basis points given their ample liquidity, Tien Phong newspaper reports. Vietnam Prosperity Commercial Bank (VPBank) has lowered rates by 20 basis points for deposits of less than six months, 30 basis points for six- and seven-month tenors, and 40 basis points for savings of between eight and 11 months. This is the third deposit rate cut of VPBank in two months.
Vietnam International Bank (VIB) also adjusted down its rates last month. The rate for savings of one to three months is now 5.1%, down 30-50 basis points against January, while six-month savings get a rate of 6-6.3% depending on the size of deposit, a decline of 20-40 basis points.
At Military Bank (MB), the rate for six-month deposits is now 5.5%, down from 5.7% in early February. Meanwhile, the rate for the 12-month term is kept unchanged at 7.2%.
The deposit rates are even lower at commercial banks with State holdings. The Vietnam Bank for Industry and Trade (VietinBank) has reduced the rate ceiling for six- to eight-month savings by 50 basis points to 4.8%. However, the rates for most long-term tenors from 12 months to less than 36 months are unchanged at 6.8-6.9%.
The Bank for Investment and Development of Vietnam (BIDV) also revised down its rates twice last month. In the first reduction, the rate for one- to two-month savings was down by 20 basis points.
In the second adjustment last month, BIDV cut the rate for deposits of 364 days and 13 months by 10 basis points. The bank’s current rates for savings of one to two months and longer than 12 months are 4.1% and 6.8-6.9% respectively.
In general, banks tend to reduce their rates for short-term deposits by 20-40 basis points. The rates are 10-30 points higher than late last year.
It is noteworthy that the difference between the rates at joint stock banks and State-owned banks is as high as 50-90 points for tenors of less than 12 months.
According to the National Financial Supervisory Commission, the loan-to-deposit ratio last month was 88.2%, up from 87.8% late last year. Liquidity in the banking system is ample as the State Bank of Vietnam has bought huge amounts of foreign currencies and the disbursement of capital raised from Government bond sales is slow.
Capital mobilized from economic organizations and individuals in the first quarter of the year rose 3% over the end of last year and was higher than the average last year (2.6%). In addition, credit growth in the first three months of 2018 was reported at 3.5% against late last year while the rate was 4.3% in the same period last year.
The interbank market also saw a plunge of 0.47-1.2 of a percentage point in deposit rates for overnight, one-week and one-month tenors to 0.83%, 0.98% and 1.73% respectively.
Source: The Saigon Times
Related News
VIETNAM EYES 8% GDP GROWTH IN 2025
The State Bank of Vietnam (SBV) has been tasked with closely monitoring global and regional economic developments and adjusting monetary policies to align with shifts in major economies. The directive emphasizes reducing lending rates, managing deposit rates at commercial banks, and ensuring credit flows remain uninterrupted in early 2025.
GOVERNMENT MEMBER FOR 2021-2026 TERM
The 2021-2026 government term was recently consolidated after the 8th session of the 15th National Assembly. It consists of 27 members, including the Prime Minister, five Deputy Prime Ministers, and 21 ministers and heads of ministerial-level agencies.
EXCLUSIVE OFFER FOR HKBAV MEMBERS
Minimum order: 1 box (10 gift boxes per box; 6 gift bags per box)Free shipping on orders over 2 million VND (nationwide delivery across Vietnam)Volume discounts available for large orders
TOTAL FDI REGISTERED IN VIETNAM HITS 31.4 BILLION USD IN JANUARY-NOVEMBER
As of November 30, 2024, the total newly registered capital, adjusted capital, and capital contributions or share purchases by foreign investors in Vietnam reached nearly 31.4 billion USD, up 1% increase compared to the same period last year.
QUANG TRI TARGETS 6,000 MW WIND POWER CAPACITY BOOST
The central province of Quang Tri is seeking the Government’s approval to expand its wind power capacity by an additional 1,500-2,000 MW for onshore projects and 2,600-4,000 MW for offshore projects, according to the Vietnam News Agency.
CONFERENCE EXAMINES PROSPECTS FOR DIFFERENT INVESTMENT CHANNELS IN 2025
Experts shed light on the factors shaping different investment channels in 2025, from real estate to stocks and cryptocurrency, at the second panel discussion at VIR's conference "Investing 2025: Decoding Variables - Embracing Opportunities" on December 12.