Local Banks Raise Interest Rates Following FED Move

Many Vietnamese banks continue hiking their interest rates for both dollar and Vietnam dong deposits as the US Federal Reserve (FED) on November 1 raised its basic interest rate by 0.25 percentage point for the sixth consecutive times since June 2004.

 

The Vietnam International Bank (VIBank) on November 1 hiked its monthly interest rates for dong deposits by 0.005-0.01 percentage points and the annual rates for dollar savings by 0.2-0.3 percentage points. The bank offers the highest rate for dollar deposits in the market by that time at 4.4 per cent per annum.

 

Two days later, Vietnam Commercial Bank for Private Enterprises (VPBank) also decided to raise its interest rates for dollar deposits by 0.1-0.5 percentage point.

 

On November 4, the rates for dollar deposits of the Southeast Asia Joint Stock Bank (SeaBank) in Ho Chi Minh City were also lifted up to 4.5 per cent per year, surpassing the rate of VIBank.

 

One week before, the Vietnam Export-Import Commercial Bank of Vietnam (Eximbank) raised its USD savings interest rates by 0.1-0.4 percentage points.

 

Meanwhile, the Military Commercial Joint Stock Bank (MCB) also decided to push up its 12-month term deposits for US dollar for the sixth time this year to 4 per cent.

 

Truong Van Phuoc, director of the Forex Administration Department of the central bank, said although FED lifted up its rates by two percentage points so far this year, there was still a big gap in interest rates for dong and dollar, to be 6 per cent on average.