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Banks complain they are suffering from overly high interest rates
Many commercial banks say they do not lack capital, but they still have to keep high deposit interest rates in order to retain depositors. The high interest rates not only make businesses suffer, but also make commercial banks worried stiff.
A commercial bank in the north has reportedly seen the deposit balance decreasing by one trillion dong, because the businesses, who have money, decided to deposit the money they have at other banks which offered higher interest rates. A source said that the managers of the bank then had to negotiate with the clients who attempt to bring their money to other banks.
As for the deposits worth 10 billion dong and more, the deposit interest rates will be negotiated, he said. The source declined to reveal the exact interest rates applied by the bank, but said that other banks are offering the interest rates of 14-15 percent per annum for big deposits.
General Director of a bank in the north said that the interest rates tend to increase these days, especially after the State Bank of Vietnam sent a signal of tightening the monetary policy.
“Most banks now have to raise deposit interest rates, because they have to retain clients, not because they seriously lack capital and need to mobilize more money,” he said.
Meanwhile, a senior executive of a bank said that the lower volume of capital pumped through the open market these days has affected many banks. Meanwhile, the loans’ term has shortened from four weeks to one week. “This has forced many banks to move heaven and earth to ensure their liquidity and has pushed the interest rates high up on the market,” he said.
According to VnExpress, some small banks have seen their liquidity weaker when the central bank began applying a series of measures to tighten the monetary policy. In order to ensure liquidity, the banks have to offer very high interest rates for deposits, at 15 percent per annum, while they also have to seek more capital on the interbank market.
“Enterprises keep complaining that the high lending interest rates will kill their business. But they should understand that the high interest rates make ourselves suffered,” General Director of a joint stock bank in the north said.
He explained that the deposit interest rates have been increasing sharply, while they can not raise the lending interest rates accordingly. “If the interest rate war continues, this will harm all businesses, banks and the national economy as well,” he said.
He went on to say that since the deposit interest rates have climbed to 14-15 percent per annum, the investors and businesses, who have money, would rather make deposit at banks to enjoy profit, rather than spending money on production. At present, the bank is lending at 16 percent on average.
Also according to VnExpress, a lot of commercial banks now offer very high interest rates, though they committed keeping the deposit interest rates at no more than 12 percent per annum. The highest interest rate quoted by SeABank is at 13 percent per annum, applied for 12 and 13-month term deposits.
vietnamnet, VnExpress
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