Orient Commercial Joint Stock Bank (OCB) has just reduced interest rates for 24-36 month terms by 0.2% per year, starting August 16.
Notably, the highest interest rate of up to 6%/year maintained by OCB for the past two months for 36-month term deposits has now decreased to 5.8%/year.
Before OCB, some other commercial banks also adjusted their deposit interest rates to 6% or lower per year.
The "trigger" for this trend is An Binh Commercial Joint Stock Bank (ABBank), which has reduced its 12-month deposit interest rate from the market's highest level of 6.2%/year to 6%/year since July 31.
Or more recently, on August 15, Bac A Commercial Joint Stock Bank (Bac A Bank) also reduced the interest rate for deposits with terms from 1-36 months by 0.1-0.2%/year. Notably, the interest rate for deposits with terms of 18-36 months applied to deposit accounts with a value of VND1 billion or more decreased from 6.05% to 5.95%/year.
Previously, Southeast Asia Commercial Joint Stock Bank (SeABank) also unexpectedly reduced interest rates by 0.25%/year from August 7 for all deposit terms. This adjustment caused SeABank to lose its position as the leader in terms of highest deposit interest rates in the market.
Specifically, the interest rate of 6.2%/year paid by SeABank to customers making savings deposits for 15-36 months with an amount of VND10 billion or more has now decreased to 5.95%/year.
Thus, in addition to more than 10 banks increasing deposit interest rates, from July 31 to now, 4 banks have reduced deposit interest rates: Bac A Bank, SeABank, ABBank and OCB.
The common point of all four banks is that they have all listed long-term deposit interest rates at market-leading levels, from 6-6.2%/year.
After the reduction, the highest deposit interest rates at OCB, Bac A Bank and SeABank fell below 6%/year, while at ABBank the highest interest rate was 6%/year.
In addition to ABBank, some banks are maintaining interest rates from 6-6.1%/year including: BaoViet Bank and BVBank listed interest rates of 6%/year for 18-36 month term deposits; Saigonbank listed interest rates of 6%/year for 13-24 month term deposits and 6.1%/year for 36 month term deposits.
The mobilization interest rate of 6.1%/year is also the highest interest rate on the market today and is listed at 5 banks, including: NCB and OceanBank (deposit term from 18-36 months); HDBank (18-month term); Saigonbank and SHB (deposit term from 36 months).
In addition to the above banks, some banks, thanks to the policy of adding interest rates, can also reach the 6%/year threshold.
For example, VPBank is listing a deposit interest rate of 5.9%/year for deposits from VND10 billion, with a term of 24-36 months. However, this bank has a policy of adding 0.1%/year to the interest rate for priority customers with a minimum balance of VND100 million and a minimum term of 1 month. Therefore, the highest deposit interest rate at VPBank can be up to 6%/year.
In general, deposit interest rates directly affect the bank's cost of capital, leading to profits being affected if deposit interest rates increase.
Therefore, large commercial banks such as Techcombank, VPBank, MB, Vietcombank, VietinBank, BIDV,... all have to compete on CASA ratio (non-term deposits). These are also the banks in the Top 10 banks with the highest CASA ratio today.
At MB, in the second quarter, the bank saved about 0.5% in capital costs compared to the first quarter of 2024. This came from the fact that CASA remained quite good, about 38.6% at the end of the second quarter. The bank expects CASA to return to the 40% level at the end of 2023.
However, with the current interest rate situation, a leader of this bank said that it still has to prepare a scenario where capital costs will increase slightly in the third quarter.
In MB’s plan to adapt to the market in the last 6 months of the year, the bank believes that deposit interest rates may increase slightly by 0.1-0.15%/year in the third quarter. Along with that, provisioning costs are also forecast to increase, so MB’s third quarter profit may fluctuate between an increase or decrease of 6% compared to the profit of the second quarter.
VN (according to Vietnamnet)Source: https://baohaiduong.vn/lai-suat-huy-dong-tren-6-tai-cac-ngan-hang-bat-ngo-roi-rung-dan-390574.html
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