Vietnam Commercial Banks Further Reduce Deposit Rates

Several commercial banks in Vietnam have joined a race to reduce deposit interest rates after the country's central bank cut base rates to 12 per cent.

 

On November 10, the Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank) decreased interest rates for all terms by 3 per cent compared to previous rates.

 

The one-month term interest rate fell to 12.12 per cent per annum, the two-month term fell to 13.2 per cent per annum, the three-month term fell to 14.16 per cent per annum, the highest one which also increased by 0.96 per cent on month. The six-month term had an interest rate of 13.14 per cent per annum, while the 12-month term had an interest rate of 12.12 per cent per annum. Interest rates with above 18-month terms were at 9.96 per cent per annum.

 

Many banks which had high interest rates reduced their rates to 15 per cent per annum. Viet A Bank had week term interest rates of 9-11 per cent per annum and its highest interest rate was 15.8 per cent per annum for a three-month term. The six-month term had an interest rate of 15.4 per cent per annum; 10-12 month terms were at 14.2 per cent per annum and 15-24 month terms were at 12 per cent per annum.

 

At HD Bank, week terms had interest rates of around 9 per cent-11 per cent per annum, the one-month term was 14.8 per cent per annum, the three-month term was the highest at 15.1 per cent per annum, the six and nine-month terms were at 14.5 per cent per annum, and the 12-month term was at 14 per cent per annum.

 

Meanwhile, interest rate for the U.S. dollar deposits increased after the State Bank of Vietnam (SBV) loosened the amplitude rate band.

 

On November 10-11, several banks applied the upper range of the amplitude to fix USD buying and selling interest rates. At the Vietnam Export and Import Bank (Eximbank), dollars were offered at selling rate of VND16.996 while the selling rate was VND16,950 per USD at Vietcombank. (Vietnam Economic Times)