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Bank interest rates have not shown signs of increasing

Bank interest rates have not shown signs of increasing

Tuesday 22, 09 2020
By the end of September 2020, large and small banks in Vietnam are still continuing to lower deposit and lending rates at different terms.

From September 19, An Binh Bank changed the new deposit interest rate schedule in the direction of a sharp decrease in terms. This is the fourth time this year, An Binh Bank adjusted the personal loan interest rate to support customers to buy houses, cars, ... from 5.9% for the first 6 months of the period and 6.9% for the next 6 months, applicable to loan packages with a term of 24 months or more.
BIDV also announced that it would reduce interest rates for individual customers to 5.5% for loans with terms of less than 6 months; only 6% / year for a loan from 6-12 months. Medium and long term loans for borrowers to buy houses, cars, production, and business from 36 months or more from this bank are also reduced by 0.1-0.2% / year.
Vietcombank also moves to change interest rates. Vietcombank decided to decrease the interest rate by 0.2% for 1-2 month term to 3.3% / year for 36 month term to 5.8% / year. This is considered the lowest savings interest rate applied by state-owned commercial banks so far.
National Citizen Commercial Joint Stock Bank (NCB), mobilizing interest rates for long terms also decreased, as the terms of 18-36 months decreased by 0.3% compared to before, to 7.5% / year.
And at Techcombank, a 1-month term deposit for 1 billion dong depositors is only 2.65%, down by 0.2% compared to the previous one, the 3-month term is only 2.85-3.2%; the 6-month term is 4.4-4.9% / year, also down 0.2% compared to the previous one. In 2019, this short term interest rate has banks listed up to 8% to attract deposits.
HDBank announced a 0.2% reduction in many terms. Accordingly, the 6-11 month term interest rate decreased from 6% / year to 5.8% / year. Interest rates for the 15-36 month term also decreased by 0.2% to 6.1-6.5%.
At Nam A Bank, interest rates for long term deposits from 30-36 months decreased about 0.4% compared to the previous one, down to 6.8% / year.
At Eximbank, the term from 15-18 months decreased by 0.1% to 6.6-6.4% respectively. The 36-month term rate dropped by 0.2% to 6.3%.
According to experts, the demand for credit growth is still low compared to the same period last year, causing the deposit and lending rates to decrease. By the end of August 31, credit growth was only half of the increase compared to the same period last year (4%), while the growth target set by the State Bank in 2020 is 11-14%.
In addition, according to the money market strategy report of SSI Securities Company, in August 2020, deposit interest rates have decreased by 0.2-4% for short term deposits and 0.2% for long term deposits. Deposit rates decreased by 0.5 - 2.1% for all terms compared with the same period last year.

Source: Vietnam Finance, Translated by Vietnam Credit

Banking & Finance

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