Commercial Banks Lower Deposit Interest Rates

Many commercial banks on December 24 lowered their short-term deposit interest rates in Vietnamese dong to 8 percent per year in response to the State Bank of Vietnam's requirement.

 

However, the rates for long-term deposits (more than 12 months) remain unchanged, hovering around 10.5 percent-12 percent per year.

 

Commercial banks also reduced lending interest rates from 13 percent to 12 percent per year in accordance with the State Bank’s regulations. Particularly, Vietinbank has recently quoted its lending rates for small and medium-sized enterprises (SMEs) from at least 8.95 percent per year.

 

The ceiling interest rates for Vietnamese dong deposits reduced six times since earlier this year from 14 percent per year. The SBV said that the move aimed to help businesses overcome financial difficulties.