Banks have increased deposit interest rates in year-end time. Some big banks said that the increase in deposit interest rates will last in a short time and they will not raise lending interest rates.
Banks have increased deposit interest rates in year-end time. Some big banks said that the increase in deposit interest rates will last in a short time and they will not raise lending interest rates.
Deposit interest rates rising
In commercial joint stock banks, deposit interest rates have risen remarkably. The VPBank - Nha Trang Branch offers the highest deposit interest rate up to 8.6%/year, which is for three-year term. At Kien Long Bank – Khanh Hoa Branch, deposit interest rates for 6 – 11 month terms is 6.8%/year, 12month term: 7.4%/year, 13 – 18 month terms: 7.5%/year, 24 month term: 7.3%/year. Deposit interest rates have also been raised in other banks like Vietnam - Russia Joint Venture Bank, PG Bank, OceanBank, DongA Bank, etc.
State-own commercial banks have also raised their deposit interest rates although the increases are not high as those in commercial banks. At present, the highest deposit interest rate at BIDV Khanh Hoa is 7.8%/year while that in Vietcombank Khanh Hoa is 6.8%/year. In Agribank Khanh Hoa, deposit interest rates have increased by 0.2%/year for over 6 month term.
According to Nguyen Hoai Chieu, director of the State Bank - Khanh Hoa Branch, deposit interest rates of under 12 month terms have few changes, those of over 12 month terms saw 0.2 – 0.3%/year increased. Deposit interest rates of banks obey the interest rate ceiling fixed by the State Bank. The reason for the increase in deposit interest rates to ensure lending demand and payment in year-end time. The State Bank – Khanh Hoa Branch keeps supervising and controlling deposit interest rates in the province.
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No increase in lending interest rates
Despite the increase in deposit interest rates, lending intesrest rates see no increase. Vietcombank Khanh Hoa has launched a document confirming that the bank keeps lending interest rates lower than that in the market, supporting businesses and applying preferential policies to prioritized industries, with the aim to implement targets of macroeconomics with the tendency of the government and the State Bank. At present, credit balance of preferential loans at Vietcombank makes up 70% of the total credit balance. Agribank Khanh Hoa has also made no increase in lending interest rates because the light increase in deposit interest rates this time lasts only in a short time to fulfill deposit growth targets of the year. Representative of BIDV Khanh Hoa also confirms that lending interest rates to production and trade don’t rise.
Thus, the increase in deposit interest rates of banks aim to ensure lending demand and payment in year-end time as well as fulfill mobilization targets in the end of the year; therefore it may occur in a short time. Moreover, big banks have also confirmed to keep lending interest rates stable, especially lending for production and trade.
Nam Du
Translated by T.T
