Noting that there are many pressures on the money market, banks' long-term deposit interest rates have increased. In fact, long-term loan interest rates have been pushed up by many banks recently to take advantage of capital mobilization and restructuring of input capital sources. However, if macroeconomic conditions are favorable, from now until the end of the year, the lending interest rate level will be maintained as stable as today.
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Clients trade at Ho Chi Minh City Housing Development Commercial Joint Stock Bank - Binh Duong Branch. Photo: Thanh Hong
Short-term deposit interest rates decreased slightly
Last week, a small number of joint stock commercial banks (commercial joint stock banks) with high interest rates in the early months of the year announced to reduce deposit rates in some short terms. Specifically, Bac A Commercial Joint Stock Bank (BacA Bank) decreased by 0.2 to 0.3% / year for savings interest rates of 6-month and 9-month term to be equivalent to 7.3 % / year and 7.5% / year; Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Vietnam International Commercial Joint Stock Bank (VIB) ... reduced the deposit interest rates for short terms of less than 6 months to about 0.1-0.4% /year.
However, the number of banks reducing deposit rates is not much and mainly decreases in short terms, the reduction is not large. It can be seen that the deposit interest rate is quite stable in the last 2 months. Currently, deposit rates of banks are popular at 0.5 - 1% / year for demand deposits and term deposits of less than 1 month; 4.5 - 5.5% / year for term deposits from 1 month to less than 6 months. However, interest rates for deposits with terms of 6 months or more at joint-stock commercial banks are quite wide. Specifically, popular deposit interest rates for 6-month term at banks ranged from 5.5 to 7.5% / year, 9 months from 5.5 to 7.8% / year, 12 months from 6.8 - 8 years; Some banks are applying interest rates of 8.6 - 8.7% per year for savings term of more than 24 months. With this deposit interest rate, the interest rate for short-term loans is not much changed.
Representative of Phuong Dong Commercial Joint Stock Bank (OCB) informed that, with a credit package of 100 million USD borrowed from International Finance Company (IFC), the bank still lends to enterprises (enterprises) belonging to 5 priority areas are popular at 7% / year for short-term loan contracts and 7.5- 8% / year for long-term periods. This level is accepted by most businesses and rated as appropriate. Meanwhile, representatives of An Binh Commercial Joint Stock Bank (ABBank) said that the company is currently implementing a preferential interest rate program with a limit of VND 2,000 billion and USD 50 million for corporate customers. coordinate with ABBank in budget collection and remittance. Enterprises are granted a credit line by the bank and pledged to lend the interest rate of only 7.08% / year for VND and 3.0% / year for fixed USD during the loan term. apply for short-term disbursements.
Efforts to keep loan interest stable
Based on macroeconomic developments, the State Bank (SBV) representative recently said that this agency will tighten the ratio of short-term capital for medium and long-term loans even more. The reason is that in the last 2 months, the ratio of short-term capital for medium and long-term loans of state-owned commercial banks and joint-stock commercial banks is respectively 31% and 31.5%, down from 31.6 % and 32.9% at the end of February 2016. The maximum limit of this indicator is currently 40%, but in the draft circular replacing Circular 36, the SBV has set a roadmap to reduce to 30% within the next 2 or 3 years.
On the basis of the above, according to the analysis of experts in the banking industry, interest rates for long terms (from 12 months or more) will therefore be difficult to reduce, even may increase slightly according to short-term programs. to implement the remaining 6 months of 2019 targets of banks, because of the increasing pressure of long-term capital mobilization of banks.
From a business perspective, the director of a large commercial bank judged that the interest rate level would be difficult to reduce. Currently, improving NIM by reducing operating costs is increasingly limited; Commercial banks are also competing to expand credit. When sales of real estate loans slowed down, the units also had to strengthen promotion and exploitation of preferential loan packages to take advantage of the market in the last 6 months of the year; while maintaining capital use efficiency. Therefore, the increase in lending interest rates, especially loans for production and business enterprises with regular limits will make banks difficult to keep customers in the coming years.
From the business that needs to borrow capital for production and business, Mr. Huynh Quang Thanh, Director of Hiep Long Wood Co., Ltd., has not seen commercial banks to raise lending interest rates up to this point. However, in recent years, some commercial banks have increased deposit rates for 13 - 24 month terms. This interest rate is taken as a reference to calculate the lending interest rate for 3 - 5 year loan contracts of many export manufacturing enterprises after the promotion period expires. Therefore, at the present time, the interest rate for production and business can still be reasonable at 9-10% / year. But businesses are worried that by the end of this promotion period, businesses will have to pay higher interest rates.
Reported by Thanh Hong – Translated by Vi Bao
