From now to the end of the year, State’s Bank will extend open market and supplement trading period to slightly reduce interest rate and open foreign currency swap as well as to offer favor conditions for commercial banks to reduce interest rates of deposits and loans.
DaiABank has adjusted interest rates by 0.14 to 0.2% a year for popular deposits and maintained maximum 11.2% for savings.
On this occasion, Vietnam Banking Association (VNBA) has just sent documents to Chairmen and General Directors of member institutions asking for interest rates cut down. The Document No. 163 by VNBA will request for unity of members to reduce interest rate of 11.2% a year to not exceeding 11.0% a year for deposits. As for on-demand interest rates and termed deposits of less than 3 month, VNBA suggests for sharp cut of interest rates in commercial banks to attract more long-term deposits because this interest rate currently stays at 4.8% a year. In VNBA’s request, once interest rate of long-term deposits is reduced deposit calling costs will reduce and accordingly reduces loans interest rate.
As for US dollars, deposit interest rate base line in commercial banks in Vietnam is relatively higher than international market. At some banks, this interest rate even reached 5.5% a year.
Higher interest rate of US dollar deposits can prove to be unbalanced with the rate for VN dong deposits. Therefore, VNBA called for banks to reduce interest rate of US dollar deposits to make room for interest rate of VN dong deposits to be reduced and balanced with foreign currency of US dollars required by interest rate reduction decision of the government.
According to VNBA, difficulties in deposit regime are adjusted to allow more deposits to credit organizations and reduce tension of deposit, making a foundation for reduction of interest rates. As for credit granting, State’s Bank has excluded guarantee part from account balance.
Once the regulations mentioned are in force, commercial banks can easily access low-rate deposits at around 8 to 9% so that commercial banks are favored with reduction of interest rates. On the other hand, VNBA will support commercial banks to the end of the year by opening up markets, adding up trading terms, slightly reducing interest rate, and extending foreign currency swap.
And, by the end of last week, some banks have reduced interest rates.
Reported by Truc Huynh – Translated by Vi Bao
