|
Banks accept 15% cap on deposit interest
Twelve commercial banks in Ha Noi have entered an agreement with the State Bank of Viet Nam's Ha Noi branch and the Viet Nam Banking Association (VNBA) to cap deposit interest rates at 15 per cent.
The agreement, which takes effect today, was made after the central bank called Techcombank and SeABank for offering interest as high as 18 per cent per year, setting off a potential interest rate war – and a scramble among depositors – on Tuesday and Wednesday of this past week.
Under the agreement, nominal rates would be held at 14 per cent or less. Coupled with bonus cash or gifts, real rates would not exceed 15 per cent per year.
The new agreement, accepted by 12 banks, was compulsory unlike previous ones, with violations punishable by State regulators, according to the VNBA.
VP Bank general director Nguyen Hung predicted the new agreement would help stabilise the market.
Meanwhile, to promote liquidity in the banking system, the central bank has recently pumped tens of trillions of dong into the interbank market, where total trading volume on Tuesday hit VND40 trillion (US$1.92 billion).
The State Bank also has relaxed compulsory reserve ratios for credit institutions for which lending to the agricultural sector accounts for more than 40 per cent of total outstanding loans, reflecting Government policy to prioritise rural development and help areas recently subject to flooding.
The compulsory reserve ratios for Agribank, VIB Bank, Kien Long Bank and Mekong Housing Bank would therefore be allowed to fall to about a fifth of the level required for other banks - currently about 1-3 per cent of total deposits. The compulsory reserve ratio for the Central People's Credit Fund would be reduced even further.
vietnamnet
|
