Vietnam Banks Agree to Stop Raising Deposit Interest Rates
Domestic commercial banks have agreed to stop a race to increase deposit interest rates to ensure the stability of local monetary market as requested by the Vietnam Banking Association.
The race has heated up over the past two weeks despite the high liquidity of the banks and of the whole banking system as well, said Duong Thu Huong, the association general secretary.
Local banks have hiked their interest rates by 20%-70% on deposits of all terms in the race to attract more funds, Huong said.
Deposit interest rates are currently being offered at 8%-8.4% per year on three-month, 8.5%-8.9% on six-month, and 8.6%-9.1% on nine-month term.
Meanwhile, bankers said they were trying to raise more funds on anticipation that the Government will soon issue a second economic stimulus package.
In a meeting last week, the association urged its members to adjust credit growth rates to meet the 30% limit regulated by the State bank of Vietnam, the country’s central bank.
The central bank has recently reported that credit grew at a rate of more than 20% in the first seven months of 2009.
At a meeting with foreign ambassadors and guests on the occasion of the National Day, September 2, the Prime Minister Nguyen Tan Dung forecast that Vietnam’s economy will grow 5%-5.2% this year. (CafeF)
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