Latest News about interest rate
Depositing money at banks is currently the safest and most profitable investment channel, as Covid-19 developments remain complicated and the stock market is "hot" and, thus, risky.
The Central bank has lowered its interest rate cap three times by a combined of 1.5-2 percentage points per annum, which is the largest cut in the region.
Commercial banks are competing fiercely with each other to disburse car loans. Both lending interest rates and car prices are at a record low.
Individual investors are increasingly buying real estate bonds and land rather than depositing money in banks, which have reduced interest rates on deposits.
Deposits at banks continue to increase, though deposit interest rates have been decreasing. With plentiful capital, banks are inviting individuals who want to borrow money to buy houses and cars.
Local banks have continued slashing deposit rates to as low as 2.5% per annum, in tandem with the Government’s principle of lowering lending rates to support borrowers.
Lending interest rates have decreased significantly, but many businesses still cannot access bank loans at low costs.
Small and medium enterprises (SMEs) need capital to revive their production, but cannot access bank loans or receive support from local credit guarantee funds.
Lower lending rates in the financial-banking market may not mean good things for the securities market, specialist Dao Phuc Tuong said.
The interest rate of compulsory reserves in the Vietnamese dong at banks will be 0.5 per cent per annum.
Commercial banks have slashed the deposit interest rates by 0.25-0.5 percent per annum as credit growth continues to be sluggish.
Vietnam’s credit growth is forecast to slow to only 8 percent in 2020 from 13.7 percent last year due to a sharp slowdown in economic activity amid the COVID-19 pandemic.
The State Bank of Vietnam (SBV) is to make decision soon on cutting the prime interest rate, the bank’s Deputy Governor Dao Miinh Tu said at a meeting on March 12.
Since the national economy this year is facing bigger challenges than last year, a looser monetary policy is needed, according to Nguyen Tri Hieu, a respected finance expert.
Some commercial banks have announced lower lending interest rates to help their clients overcome the difficulties caused by coronavirus (Covid-19) crisis.
Vietnam’s central bank has asked commercial banks to promptly adopt measures to support their customers in the wake of the coronavirus outbreak, including rescheduling repayments and revising down interest rates.
When the State Bank of Vietnam (SBV) late last week slashed the dollar purchase price, the greenback prices quoted by commercial banks were adjusted immediately.
Reporting high profits, Vietnamese commercial banks have once again lifted concerns about profit growth limits.