Interest rates continuously "break through" the bottom
From June 19, 2023, the State Bank has adjusted the operating interest rate down for the fourth consecutive time. Accordingly, the "ceiling" for short-term interest rates is only 4.75%/year. However, both short-term and long-term mobilization interest rates have continuously hit rock bottom.
For short-term (1 month and 2 months), the Big 4 group (state-owned units: Joint Stock Commercial Bank for Foreign Trade of Vietnam - Vietcombank, Joint Stock Commercial Bank for Investment and Development of Vietnam - BIDV, Joint Stock Commercial Bank for Industry and Trade of Vietnam - VietinBank and Vietnam Bank for Agriculture and Rural Development - Agribank) also brought down to the "bottom" level of only 3.4%/year.
For long term (from 12 months to 60 months), the lowest rate is only 6.3%/year.
Meanwhile, some joint stock commercial banks also adjusted their 12-month term interest rates to "break" the 7%/year mark, such as Lien Viet Post Joint Stock Commercial Bank - LPBank (6.6%/year), Dong A Commercial Joint Stock Bank - DongA Bank (6.7%/year), Vietnam Technological and Commercial Joint Stock Bank - Techcombank (6.9%/year), Saigon Commercial Joint Stock Bank - SCB (6.95%/year).
10 days after the State Bank reduced the operating interest rate, the mobilization interest rate continuously "broke" the bottom. However, the highest level is still 8.6%/year. Illustrative photo
Some other units are "anchoring" the 12-month term interest rate at 7%/year such as Saigon Thuong Tin Commercial Joint Stock Bank - Sacombank, Tien Phong Commercial Joint Stock Bank - TPBank, Military Commercial Joint Stock Bank - MB, Kien Long Commercial Joint Stock Bank - KLBank.
The most notable is An Binh Commercial Joint Stock Bank (ABBank). On June 19, when the new interest rate ceiling was applied, the highest rate at this unit was still up to 11.2%/year applied to deposits under VND1,500 billion. However, since September 23, the highest rate has been sharply adjusted down to only 7.8%/year.
The highest level still reaches 8.6%/year
Although the mobilization interest rates are continuously adjusted down by banks. However, the highest rate on the market today is 8.6%/year at Vietnam Russia Bank (VRB) applied for 24-month and 36-month terms.
In addition, VRB currently has many terms recording interest rates above 8%/year such as 8.5%/year (18 months), 8.4% (15 months), 8.3% (13 months), 8.2% (12 months). At the 6-month term, the interest rate is also up to 7.8%/year.
DongA Bank has adjusted its interest rate down significantly, to below 7%/year (except for the 13-month term). However, customers of this bank still have the opportunity to enjoy interest rates above 8%/year if they have extra money.
Specifically, for a 13-month term, customers will receive an additional 1.2% interest rate at the end of the term if they have a deposit of VND500 billion or more. Thus, the highest rate at DongA Bank is up to 8.3%/year, not 7.1% as listed.
In addition, Construction Bank – CB also listed interest rates of 8.15%/year for 12-month term and 8.25% for 24-month term.
Meanwhile, Saigon Hanoi Commercial Joint Stock Bank – SHB has also applied a new listing schedule. Accordingly, the highest rate has also dropped below 8%/year. That is 7.7%/year applied for terms from 12 months to 36 months in the online form.
As for deposit certificates, SHB listed rates of 8.6%/year for a 6-year term and 8.8%/year for an 8-year term.
Managing interest rates in line with macroeconomic balance and inflation
Deputy Governor of the State Bank Dao Minh Tu said that with the management and direction measures of the State Bank, up to now, the interest rate level has basically stabilized, and deposit and new loan interest rates tend to gradually decrease.
The average deposit interest rate of commercial banks is about 5.8%/year (down 0.7% compared to the end of 2022); the average VND lending interest rate is about 8.9%/year (down 1.0%/year compared to the end of 2022).
In the coming time, the State Bank will continue to closely follow market developments and the domestic and foreign economic situation to flexibly and synchronously manage monetary policy tools and solutions to control inflation, contributing to stabilizing the macro-economy, stabilizing the money and foreign exchange markets, and controlling credit growth according to the set orientation.
Manage interest rates in line with macroeconomic balance, inflation and monetary policy targets; continue to encourage credit institutions to cut costs and reduce lending interest rates to support businesses in recovering and developing production and business.
According to the latest information released by the General Statistics Office on the morning of June 29, the Consumer Price Index (CPI) in June 2023 increased by 0.27% compared to the previous month, and the average CPI in the first 6 months of this year increased by 3.29% over the same period last year.
Ms. Nguyen Thi Huong, General Director of the General Statistics Office, assessed that the growth rate of 3.72% in the first 6 months of the year was not high, but major balances were ensured, the macro economy was stable, and inflation was controlled at an appropriate level in the context of facing many difficulties and challenges both domestically and internationally.
Source
Comment (0)