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Banks hike interest rates as deposit growth slows
Twelve banks have raised their deposit rates by up to 1 percentage point in the last four weeks amid a jump in credit demand.
Agribank hiked its rates the most -- by 0.5-1 percentage point for terms below 12 months.
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A transaction pictured at a bank in Hanoi. |
It now offers the highest interest among the four state-owned banks.
It pays 2.4-3.7% for terms under 12 months and 4.8% for longer terms.
Several private lenders hiked their rates by 0.1-0.5 percentage points, including MB, VPBank, TPBank, VIB, MSB, Eximbank, SeABank, Kienlongbank, CBBank, and LPBank.
Some such as GPBank and WooriBank offer at least 6% for terms of 12 months or longer.
The average deposit interest rate has risen by 0.5 percentage points from the bottom reached in the second quarter of this year, according to Vietcombank Securities.
Deposit growth has been slower than credit growth, forcing lenders’ hand.
As of Dec. 7 credit growth was 12.5% as against 9% in the same period last year.
More than 10 banks have increased their deposit interest rates by 0.1-0.9 percentage points in the last month, with the highest now for a 12-month period being 6.2%.
Banks’ average lending interest rate was 8.3% as of the end of June, down 0.96 percentage points for the year, according to the State Bank of Vietnam.
Some 20 banks have hiked their deposit interest rates by 0.1-0.9 percentage points in the last month, with the highest for 12-month deposits now being 5.9%.
The State Bank of Vietnam (SBV) will research and amend regulations on safety and security in online banking service provision to better protect customers, an SBV official said on July 4.
Despite low interest rates, bank deposits have reached a new historic peak of 16 quadrillion VND (628.5 billion USD) as of the end of March, according to the latest data from the central bank.
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