Bank islami saving account profit rate

Many banks in Vietnam started cutting deposit interest rates from Thursday, just one day after the State Bank of Vietnam, or the central bank, lowered operating interest. At commercial banks, deposit rates for tenors of one month to below six months are kept at the ceiling rate of six percent per year set by the central bank. The rates for terms of over six months have been revised down sharply compared to those in early March. The deposit rates for a 12-month tenor mainly stand at 8.4-8.8 percent per year, down 10-20 basis points. Some banks have even cut the rates by 50 basis points for the same term. VPBank now quotes its rates at 8.3 percent for online deposits of six months and 8.7 percent for a 12-month tenor, down 50 basis points. VietABank is also applying new deposit interest rates at 8.5-8.8 percent for tenors of six months or longer, felling by 0.5 percentage points. The tenors of 18 months, 24 months, and 36 months are seeing the highest deposit rate at 8.8 … [Read more...] about Vietnam banks rush to slash deposit rates

It had grown at 14.5% last year. Ninh, who runs a cargo transport firm, said the scale of his operation has fallen by 40-50% in the last two years. He has not borrowed from a bank also because lending interest rates are high, he said. "We can’t be profitable at an interest rate of 10-12%. We have to sell off assets to reduce debts." His customers have also had to change their production plans and import smaller volumes of goods and get loans for shorter terms, he said. "Everything is slowing down." For individuals, high interest rates are also a big barrier. Thanh Tung, a credit officer at a leading private bank in Hanoi, said many people who had want to borrow become reluctant after knowing that interest rates are currently 13-14% and even higher in some cases. The CEO of a private bank said: "Since the beginning of 2023 few people have taken home loans." The rates make people hesitant about borrowing to fund real estate purchases unless they urgently need a home to live … [Read more...] about Bank credit growth expected to slow down in 2023

A view of an ABBank’s transaction office in Ha Noi. ABBank is currently the only bank that is listing interest rate of more than 9 per cent per year for 12-month deposits. VNA/VNS Photo Interest rates on the interbank market, the open market operation (OMO) channel and commercial banks have all decreased after the State Bank of Vietnam (SBV) cut several policy interest rates last week. The SBV on March 15 made its first policy rate cut by 50-100 basis points since October 2020 to support economic growth and stabilise the monetary market. Accordingly, the discount rate has been reduced from 4.5 per cent per year to 3.5 per cent per year while overnight electronic interbank rate and interest rate for loans to offset capital shortages in clearance between the central bank and commercial banks have been also decreased from 7 per cent per year to 6 per cent per year. After the SBV’s move, interest rates in the inter-bank market have declined significantly. Accordingly, the average … [Read more...] about Interest rates reduce in all markets in wake of central bank’s policy rate cut

Since the State Bank ò Vietnam reduced the policy rate in mid-March, more than a dozen banks, including VPBank, VIB, Sacombank, SHB, HDBank and Viet Capital Bank, have all cut the rates. Most private lenders listed the highest interest rate of 8%-9% a year. Some others such as Sacombank, VIB, Techcombank, CBBank and PGBank even offered rates below 8%. Currently, there are only two banks that list interest rates above 9% a year: ABBank (9.1%) and SCB (9%). However, the actual interest rates for over the counter transactions are still different from listed ones. Some banks are still willing to pay an interest rate of 9.5% per year for terms of 12 or 13 months. At OCB, the 13-month term deposit rate is 9.4% a year, 0.5%-0.6% higher than listed. At Kienlongbank, depositors are offered cash equivalent to the interest rate plus 0.4% compared to the listed price. Compared to the peak period at the end of last year (when the interest rate was as high as 12% a year), the savings … [Read more...] about Deposit interest rates tumble

How did a bank ranking on the list of American Best Banks for five straight years collapse in your viewpoint? Professor Andreas Stoffers, country director of the Friedrich Naumann Foundation in Vietnam Just before March 10, Silicon Valley Bank (SVB) was the 16th largest in the US. It had taken four decades to build and its parent company SVB Financial Group. However, it took only 36 hours to completely dismantle. SVB was forced to sell assets at a loss to pay for withdrawals from venture capital funds and tech startups. However, this led to massive withdrawals, while SVB was facing many difficulties, which left it unable to pay its debts, leading to bankruptcy on March 10. Dark memories of the 2008 financial crisis returned and this crisis did reach other banks in the US as well. Many questions remain unanswered, such as why bonuses were still being paid to management shortly before the bank collapsed and why the CEO was still gold-plating his shares in January … [Read more...] about The potential ramifications of US banking collapse

Clients waiting outside a branch of the Silicon Valley Bank in Santa Clara, California on March 13. (Photo: XINHUA/VNA) HCM City (VNS/VNA) - The Silicon Valley Bank (SVB) collapse by itself will end up being neutral for Vietnam’s stock market and economy, Michael Kokalari, chief economist at investment fund VinaCapital , has said in a report. “Furthermore, we see no substantial risk that the dynamics which negatively impacted SVB and certain other regional US banks could significantly impact the profitability and/or solvency of banks in Vietnam.” It was widely reported that latent losses on SVB’s securities portfolio coupled with a drop in deposits at the bank were the main factors that led to its rapid insolvency, it said. Vietnamese banks also held Government bonds on their balance sheets, and the prices of 10-year Vietnam Government bonds (VGBs) had dropped by around 15% since mid-2021 and yields surged. However, VGB holdings only accounted for around 6% of listed … [Read more...] about Silicon Valley Bank collapse not to impact VN: VinaCapital

The Silicon Valley Bank (SVB) collapse by itself will end up being neutral for Vietnam’s stock market and economy, Michael Kokalari, chief economist at investment fund VinaCapital, has said in a report. Clients waiting outside a branch of the Silicon Valley Bank in Santa Clara, California. — AFP/VNA Photo “Furthermore, we see no substantial risk that the dynamics which negatively impacted SVB and certain other regional US banks could significantly impact the profitability and/or solvency of banks in Vietnam.” It was widely reported that latent losses on SVB’s securities portfolio coupled with a drop in deposits at the bank were the main factors that led to its rapid insolvency, it said. Vietnamese banks also held Government bonds on their balance sheets, and the prices of 10-year Vietnam Government bonds (VGBs) had dropped by around 15 per cent since mid-2021 and yields surged. However, VGB holdings only accounted for around 6 per cent of listed banks’ … [Read more...] about Silicon Valley Bank collapse not to impact Vietnam: VinaCapital

Its currency deposit and issuer ratings were lowered from Ba2 to Ba3, the same level as several other banks in Vietnam. Its outlook is down from stable to negative. "The downgrade of Techcombank's ratings and assessments reflects Moody's expectations that the stress faced by Vietnam's real estate sector will negatively impact the bank's standalone credit strength, given its high exposure to the sector," the ratings agency said in a release. The downgrade is not related to recent U.S. bank failures and events at Credit Suisse Group AG, it claimed. As of the end of December loans to the property and construction sectors represented 29% of Techcombank's gross loans. The bank also had exposure to the sectors in the form of corporate bonds, which made up 6% of its total assets. Some of its exposure to the property sector were of significant size relative to its tangible common equity and could bring volatility to its profitability and capital should they become problem assets. … [Read more...] about Moody’s lowers Techcombank ratings

Asian markets bounced Tuesday from the previous day's rout, with lenders boosted by easing concerns of another financial crisis, while focus turned to the Federal Reserve's policy decision later in the week. The panic that characterised trade over the past 11 days appeared to have faded after authorities in leading economies pledged support for depositors and troubled banks following the collapse of Silicon Valley Bank and Signature Bank in the United States. Still, the takeover of troubled Credit Suisse by UBS for $3.25 billion fanned concerns about what could be next on the chopping block, and analysts warned it was too early to say that the crisis was over. The move to save Credit Suisse aimed to prevent a wider crisis as it is among the 30 global banks considered "too big to fail". All three main indexes on Wall Street ended on the front foot -- with the Dow more than one percent up -- while European markets were also comfortably higher, helped by promises of … [Read more...] about Asian markets rebound as bank fears ease, Fed decision in view

Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - Commercial banks that underwrite and sell corporate bonds have to buy them back if investors so demand, the central bank has said. It followed a meeting with voters (members of the public) the State Bank of Vietnam (SBV) held in Ho Chi Minh City amid the ongoing bond market troubles. Besides asking for underwriting banks to take responsibility for redeeming bonds, the voters also urged the SBV to tighten inspection of credit institutions to ensure they comply with regulations while investing in bonds. The SBV recently raided 11 banks and fined a number of them for violating regulations related to bond purchases. Under current regulations, banks must have an internal credit rating system and can only buy bonds if their bad debts ratio is below 3%. For bonds sold in the domestic market, when issuers cannot pay in full and on time the bond principal and interest, they must negotiate with bondholders for extending the term … [Read more...] about Banks underwriting bonds should buy back bonds: Central bank