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Negotiable interest rates on deposits latest draw from banks
A number of banks in Vietnam are offering negotiable deposit rates in a bid to attract more customers
Deposit interest rates surpass 12% per year
A general director of a commercial joint stock bank in Hanoi said, “The popular deposit interest rate is at 12% per year, but a number of banks still accept the higher levels to lure in more deposits”.
In reality, deposit interest rates of banks are much higher than those fixed. Customers who deposit VND100 million (USD5,000) or more can negotiate interest rates with banks. "This has created an unhealthy competition which forces big banks and credit organisations to follow small banks,” he added.
General Director of Vietnam Prosperity Bank (VPBank) Nguyen Hung said, “It is quite popular to see customers who come to our bank for interest rate negotiation. If our major and long-term customers are being attracted by other banks, we will raise interest rates to keep them. Many banks always offer priorities for big customers.”
VPBank applies a deposit interest rate of 13.5% per year for a 13-month term. Meanwhile, Southeast Asian Commercial Joint Stock Bank (SeABank) has a 13% rate on 12-month and 13-month terms. The Western Bank raised its deposit interest rate to 12% per year for all terms and 12.8% per year for a 13-month term.
Loans are on the low, rates on the high
Collected figures from 37 banks by the interest rate gateway www.laisuat.vn indicated that, VND lending interest rates now range from 10.5% to 12.3% per year for prioritised sectors such as agriculture, rural development and exports. The rate is 13-15.5% a year for production and business activities and up to 16-19% per year for life activities.
Several banks have applied interest rates of up to 19-20% per year to consumer loans. Many banks have stopped providing new loans. A transaction staff at a branch of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) in Hanoi said the branch has to postpone giving new loans to customers, instead, it only offers long-term loans with a lending interest rate of over 18% per year.
General Director of VPBank Nguyen Hung attributed the weak liquidity to the halt of giving new loans.
vietnamnet, dantrinews
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