ANTD.VN - Although bank deposits have continuously increased to a record level, they are still lower than the growth rate of capital mobilization. Therefore, interest rates at banks have continued to increase.
Short-term deposit interest rates increase rapidly
Towards the end of the year, the frequency of interest rate increases at banks has become more frequent. Most recently, MB has increased interest rates on short-term deposits (1-5 months) by 0.1%/year; for 12-18 month terms, it has also increased by 0.05 percentage points to 4.95%/year. Previously, MB also increased interest rates on digital savings deposits on November 8, 2024.
According to a survey, from the beginning of November 2024 until now, more than a dozen banks have increased deposit interest rates, including: GPBank, LPBank, Nam A Bank, VIB, Viet A Bank, VIB, MB, Agribank, Techcombank, ABBank, VietBank...
After many increases, the 12-month deposit interest rate has reached 5.95%/year in some places, and the 13-month deposit interest rate has exceeded 6%/year. The deposit interest rate of over 6%/year for long-term deposits has appeared at many banks, such as Ocean Bank, BaoViet Bank, BVBank, HDBank, NCB, ABBank, Bac A Bank, Saigonbank, etc.
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The race to raise interest rates in short terms is fierce. |
At some banks, sky-high interest rates still appear, but only apply to certain deposits. For example, PVCombank lists an interest rate at the counter of 9.5% for a 12-13 month term, but only applies to customers with a minimum deposit balance of VND2,000 billion.
Or HDBank also pays interest of 8.1%/year for 13-month term and 7.7% for 12-month term, but the condition is that the minimum balance must be maintained at 500 billion VND or more.
MSB applies interest rates at the counter up to 8%/year for 13-month term and 7% for 12-month term, deposit amount also from 500 billion VND.
Despite the continuous increase in interest rates, according to the announcement of the State Bank of Vietnam (SBV), the interest rate level is still at a relatively low level. Specifically, the announcement on interest rate movements of credit institutions for customers in October from this agency shows that the average VND deposit interest rate of domestic commercial banks is at 0.1 - 0.2%/year for demand deposits and deposits with terms of less than 1 month; 2.9 - 3.8%/year for deposits with terms from 1 month to less than 6 months;
For terms from 6 months to 12 months, the common interest rate is around 4.4 - 5.0%/year; for terms from over 12 months to 24 months is 5.2 - 6%/year; for terms over 24 months is 6.9 - 7.2%/year.
These interest rates have not changed significantly compared to the previous announcement. Specifically, deposit interest rates have increased slightly for terms under 12 months, while terms of 12 months or more tend to decrease by about 0.1%/year.
Limited room for reducing lending rates
According to statistics from the State Bank, credit growth as of October 31 had reached more than 10% compared to the end of last year, much higher than capital mobilization. This prompted banks to continue to increase deposit interest rates.
The reason why interest rates have only increased in short-term terms is because medium- and long-term capital sources at banks have now shifted significantly to corporate bonds. Continuously in recent months, data from the Hanoi Stock Exchange shows that banks have successfully issued a series of bonds to the public and individual bonds with an issuance volume of up to thousands of billions of VND.
According to the VDSC Securities Company’s analysis team, the increase in bank interest rates is necessary in the context of high demand for loans from businesses at the end of the year. This also shows the flexibility of banks in ensuring capital sources to serve the economy, while maintaining safety and liquidity for the system.
MB Securities Joint Stock Company (MBS) believes that the trend of increasing interest rates will be maintained by banks, mainly due to the context of rapid credit growth at the end of the year.
According to VIS Rating, the wave of interest rate hikes will affect small banks as net interest margins (NIMs) narrow and deposit mobilization costs increase amid fierce competition.
The State Bank also said that the increase in deposit interest rates makes the goal of further reducing lending interest rates more difficult. In the first 10 months of 2024, the State Bank kept the operating interest rate unchanged, while lending interest rates decreased by 0.76% compared to the end of 2023. Meanwhile, the demand for credit capital in the last months of the year is showing a tendency to continue to increase, and exchange rate pressure from the international market means that there is not much room left to reduce lending interest rates.
Another pressure on monetary policy, according to the State Bank, is that the capital supply pressure of the credit institution system for the economy is still large, including medium and long-term capital in the context of capital mobilization from the corporate bond and securities markets facing many difficulties. This potentially poses a large term risk and liquidity risk for the banking system (short-term mobilization for medium and long-term lending).
Source: https://www.anninhthudo.vn/lai-suat-huy-dong-lien-tuc-tang-lai-vay-ngay-cang-kho-giam-them-post596510.antd
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