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State bank cuts interest rates
The State Bank of Vietnam (SBV) has decided to lower the ceiling deposit interest rate for VND to 13 per cent year beginning from tomorrow, March 13.
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Ceiling deposit interest rates for VND accounts to be cut to 13 per cent annum |
As a result, interest rates for demand deposits and terms of less than one month will be reduced to 5 per cent annum from a current 6 per cent.
The capped interest rate for deposits with terms of more than one month will also be slashed to 13 per cent year, instead of current 14 per cent.
People’s credit funds must lower interest rates for deposits with terms of over a month to 13.5 per cent per annum from current 14.5 per cent.
Interest rate for refinancing services will be slashed by 1 per cent to 14 per cent year while overnight rate will be down from 16 per cent annum to 15 per cent and re-discounting interest rate to 12 per cent per year, instead of 13 per cent.
Banks start to lower interest rates
Before receiving the SBV’s official interest rate cut requirement, several commercial banks have started to lower their interest rates by from 1 per cent to 2 per cent year.
The Vietnam Prosperity Joint - Stock Commercial Bank (VPBank) tops the list for lowering lending interest rates by up to 2 per cent year. It plans VND5 trillion ($239.57 million) on such programme.
“The cut in interest rates is aimed at heightening credit growth and helping enterprises and individuals to have a better access to bank loans,” an anonymous VPBank official said.
An Binh Commercial Joint-Stock Bank (ABBank) ranks second for reducing lending rates by 1.5 per cent year for the first period of interest payment.
Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank) said it had slashed its lending interest rate for VND for terms of maxi four months for import-export enterprises to 16.5 per cent year. It plans to spare VND1 trillion ($47.91 million) to subsidise the programme.
In the meanwhile, the Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) has decided to cut its lending interest rate for VND by a maxim 1 per cent for enterprises to around 17 per cent annum.
Vice Chairman Nguyen Duc Huong of the bank said the institution plans to loan over VND6 trillion ($287.49 million) for agriculture and rural development this year.
In the same move, HSBC Vietnam has announced its plans to lower lending interest rates for individuals wanting to buy houses and cars.
HSBC is applying an interest rate of 15.9 per cent year for asset-based lending while long-term lending interest rates stand at 18.9 per cent annum.
Major banks, including Vietinbank, BIDV, Agribank, and Vietcombank have pioneered lowering interest rates.
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