Banks cap deposit interest rates at 12 percent

Commercial banks began increasing their deposit interest rates to 12 per cent per year, in accordance with an agreement that was implemented late last week.

Viet Nam Banks Association's members also agreed to cap deposit interest rates at 12 per cent, instead of at the previous 11 per cent.

Small banks worry that if both big banks and commercial banks issue deposits at the same interest rates, small banks will not be able to compete with bigger lenders.

Because of higher input cost, banks also plan to raise lending interest rates for short-term loans to 12.75-14 per cent per year, instead of at 12-13.5 per cent.

To be updated.

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