return icon Vietnamnet.vn

VN banks lower savings rates but base rate could still be high

Several local banks have reduced their interest rates in recent days, going against the banking sector’s general year-end trend of increasing rates to boost earnings.

 

 

{keywords}

Savings rates were reduced by 0.1-0.2 percentage points by ABBank, Saigon-Hanoi Bank (SHB), VPBank and Techcombank.— Photo vietnamnet.vn

 

 

On Monday, Saigon Commercial Bank (SCB) cut its 24-month savings rate by 0.2 percentage point to 7.55 per cent per annum.

Ban Viet Bank (VietCapitalBank) in early November curbed savings rates by 0.1-0.2 percentage point for accounts with terms of less than 12 months and more than 24 months. But the bank raised rates for 15-month accounts by 0.2 percentage point to 8.5 per cent per annum.

At Eximbank, savings rates for 15-month and 18-month accounts were also cut by 0.2 percentage point to 8.1 per cent per annum.

Savings rates were reduced by 0.1-0.2 percentage points by ABBank, Saigon-Hanoi Bank (SHB), VPBank and Techcombank.

The banks’ third-quarter financial reports showed they had all recorded increases in customer savings as of the end of September.

In contrast, other banks have raised savings rates by 0.2-0.7 percentage points for less-than-12-month accounts, such as National Citizen Bank (NCB) and Vietnam Public Bank (PVcomBank).

Central banks in Southeast Asia and East Asia such as Thailand, China, South Korea, India, Indonesia and the Philippines have cut their base interest rates to stimulate the economy and raise inflation.

The State Bank of Vietnam (SBV) last week pumped a net value of VND6 trillion (US$258.6 million) into the banking sector to help reduce interest rates.

At the ongoing 14th National Assembly’s seventh meeting, Prime Minister Nguyen Xuan Phuc urged banks to cut lending rates by a minimum of 0.5 per cent for prioritised industries in 2020 to boost their performances.

SSI Securities Corporation's (SSI) research unit (SSI Research) said in a recent report there was barely a change in both saving and lending interest rates in the last two months of the year.

The range of interest rates had not changed much though banks had lowered their rates by 10-20 basis points and there was still a gap between small-cap and large-cap banks, SSI Research said.

Interest rates of 4.1-5.5 per cent per annum for savings with terms of less than six months, 5.3-7.8 per cent for savings with terms of 6-12 months and 6.4-8.1 per cent for savings with terms of 12 and 13 months.

According to SHB General Director Nguyen Van Le, banks were raising long-term capital from customers to boost their performances in the final months of the year.

According to the Bank for Investment and Development of Vietnam (BIDV)’s Institute for Training and Research, interest rates had increased by on average 0.4 per cent in the first 10 months.

Banks wanted to increase capital to meet the demands for borrowing at the year-end, meet Basel 2 standards on capital adequacy ratio (CAR), and match the SBV’s policy to reduce the use of short-term capital to pay medium- and long-term loans.

Banks were having difficulties because the credit limit was set at 14 per cent for 2019 so some banks, which had almost crossed the bar, had to consider lowering saving rates to save costs, according to business insiders. — VNS

Credit growth rises at joint stock banks, falls at state-owned banks

Credit growth rises at joint stock banks, falls at state-owned banks

The credit growth rates of state-owned banks are decreasing, but rising at joint stock banks.

VN banks’ profits from foreign exchange trading dwindling

VN banks’ profits from foreign exchange trading dwindling

One thing that stands out in many banks’ third quarter reports is the sharp drop in profits from foreign exchange trading activities.

MORE NEWS

Vietnam to attend ASEAN Tourism Forum 2023 in Indonesia

Vietnam will participate in ASEAN Tourism Forum (ATF) 2023 themed “ASEAN: A Journey to Wonderful Destinations”, and the Travel Exchange (TRAVEX) trade fair in Yogyakarta, Indonesia from February 2 – 5.

Hanoi and Ho Chi Minh City among safest cities in Southeast Asia

Hanoi and Ho Chi Minh City have both been included in a list of the safest cities in Southeast Asia, as compiled by statistics site Numbeo.

Action plan issued to accelerate national anti-corruption strategy building

Deputy Prime Minister Le Minh Khai, head of the steering committee on building the national anti-corruption strategy by 2030, has signed a decision on the issuance of the committee’s action plan.

VIETNAM BUSINESS NEWS JANUARY 31/2023

Latest guidance on one-way money transfers from Viet Nam

HCM City proposes removing hindrances to develop real estate market

Ho Chi Minh City authorities made a proposal to clear bottlenecks for healthy and sustainable development of the real estate market.

More high-value foreign investment projects needed as tax policies change

Vietnam needs to improve FDI quality, attracting high-tech projects that promise to bring higher added value.

Khmer's ginger cake of love and faithfulness

The ginger cake of the Khmer ethnic group in Soc Trang Province is a beloved traditional treat that is often offered to ancestors on important anniversaries such as the Tet (Lunar New Year) festival.

HCM City promotes digital transformation in education

Digital transformation is considered key to improving education and training quality, as proven by the effect of HCM City actively applying digital transformation over the past five years.

Hanoi to close fruit shops lacking proper food safety preparations

The capital city of Hanoi encourages the expansion of safe fruit businesses while clamping down on fruit shops that do not comply with food safety protocols, specifically street vendors.

Dutch diplomat donates Vietnamese paintings to national museum

Vietnam National Fine Arts Museum has received two paintings from former deputy ambassador Ellen Berends of the Netherlands to Vietnam.

Hanoi's unique rice cooking contest in photos

On the 8th day of the first lunar month each year (January 29, 2023), Thi Cam village in Hanoi’s Nam Tu Liem district holds a rice cooking contest.

Hanoi proceeds with park revitalization program

The implementation of Hanoi leaders’ promise to revive parks has begun: admission to Thong Nhat Park is now free after the removal of the fence, and Con Coc Flower Garden has a new look. However, there are still many things that need to be done.

Vietnamese farmers on board the ‘digital agriculture train’

In the digital era, next-generation farmers can fertilize and water their fields in Binh Phuoc from afar, even in a different country.

Vietnam forecast to become second-largest economy in Southeast Asia by 2036

2023 is predicted to be the year of many challenges for the Vietnamese economy due to the gloomy outlook of the global economy and multiple crises.

Prenn Pass leading to Dalat to be closed for expansion

Vehicles will be banned from using the seven-kilometer-long Prenn Pass to travel to Dalat City as work on the pass upgrade and widening project begins on February 6.
back_to_top