Yesterday was the first day commercial banks implemented decrease of deposit rates from 6.5% per year to 5.5% per year for terms from one month to under 6 months while lending rates was plunged along.
A client completes deposit procedure at NamAbank.
This move is considered as a proper deed in the current situation.
On Oct. 29, most of transaction sites at banks completed software installment of applying mobilized interest rate of 5.5% per year instead of 6.5% per year as the previous years. Le Ngoc Hieu, director of NamAbank’s Binh Duong branch said that NamAbank applied the new VND mobilizing policy 2 weeks ago. However, on Oct. 28, the entire system of NamAbank still well obeyed the State Bank’s instructions and policies and set up a synchronous database programming system, so the bank’s database is very accurate right at the stipulated time.
Similarly, Vietcombank Binh Duong adjusted mobilizing interest rates 2 weeks ago. On Oct. 29, this banks continued to decline lending interest rates from 9.5% per year to 9.3% per year for commercial field, from 9.3% per year to 9% per year for production and export.
Under implementation of declining mobilizing and lending interest rates on the BIDV’s headquarters, BIDV Binh Duong also announced deposit rate sheet for clients. Despite decrease on deposit interest rates, clients still choose deposit at banks. Nguyen Thi Thu Lieu, the client implementing transaction at BIDV Binh Duong said “deposit rates in the current time decline strongly. However, I still choose to deposit at banks”.
Talking about launching decrease on interest rates, Nguyen Thi Thu Ha, vice head of BIDV Binh Duong’s individual transaction office said that deposits at banks are not attractive compared with profits from other investment channels but obviously this is the safest choice for many people.
According to the partial statistics, as of 10 a.m of Oct. 29, BIDV Binh Duong attracted tens of clients, increasing mobilizing capital of over VND10bil from individual clients. “This is a good signal for banking sector in the coming time”, Nguyen Thi Thu Ha shared.
After many adjustments of mobilizing interest rates, the State Bank continued to require commercial banks to decrease short-term lending rates in VND from 8% per year to 7% per year for some key economic sectors. Aside from plunging interest rates of short-term loans, commercial banks such as Agribank, Vietcombank, VietinBank, BIDV cut interest rates of middle and long-term loans at 10% per year for 5 prioritized fields.
These new signals show a positive move on currency market and bring joy for many clients. Nguyen Thoi Hoa Binh, director of Don Tay Co.Ltd in Tan Uyen town said that increase of a series of input costs made enterprises’ competition plunge. Therefore, cutting of lending interest rates will help solve difficulties, facilitating businesses’ production and business.
Based on the common idea from some local commercial banks, adjustment of mobilizing interest rates will affect on depositors’ psychology and perhaps, some clients will seek out a new business way in the coming days. However, this figure will not impact much on capital source of banks because the total mobilized capital of local banks reached nearly VND94,000bil as of Sept. 30 while the total outstanding loan of more than VND72tril.
Therefore, cutting of lending interest rates both impacts on capital borrowers and positively on economy. This cutting of interest rates is to push up production and business, stimulate credit growth and economic development in this current context, said Le Ngoc Hieu, director of NamAbank’s Binh Duong branch.
Reported by T.HONG – Translated by A.C
