A member of staff at a bank change the numbers showing interest rates. Many commercial bank raised deposit interest rates in recent months. (Photo vietnamfinance.vn Hanoi (VNS/VNA) - Many commercial banks raised deposit interest rates in recent months, triggering worries about the increasing pressure on the lending rates. But some insist this was only a short-term measure. From the beginning of December, rates for deposits of less than six month terms were mostly increased to the ceiling of 5.5 percent and 5.7-7.6 percent for deposits of six to 12 month terms. For long-term deposits, rates were raised from 6.5-8 percent per year popular in the first months of this year to currently 8.5-8.7 percent. National Citizen Bank, Viet Capital Bank, Bac A Bank, VPBank, PVComBank, VietA Bank, Sai Gon Commercial Bank and Orient Commercial Bank were among those offering 7 percent interest rate for deposits of six-month term. At VPBank, depositors would be provided rates of up to 7.7 … [Read more...] about Banks raise deposit rates in short-term
Banks offer debt consolidation loans
Banks raise deposit rates but only short-term
Many commercial banks raised deposit interest rates in recent months, triggering worries about the increasing pressure on the lending rates. But some insist this was only a short-term measure. From the beginning of December, rates for deposits of less than six month terms were mostly increased to the ceiling of 5.5 per cent and 5.7-7.6 per cent for deposits of six to 12 month terms. For long-term deposits, rates were raised from 6.5-8 per cent per year popular in the first months of this year to currently 8.5-8.7 per cent. National Citizen Bank, Viet Capital Bank, Bac A Bank, VPBank, PVComBank, VietA Bank, Sai Gon Commercial Bank and Orient Commercial Bank were among those offering 7 per cent interest rate for deposits of six-month term. At VPBank, depositors would be provided rates of up to 7.7 per cent per year for deposits from six to 12 month terms. For deposits of 12-24 month terms, Viet Capital Bank offered a rate of 8.6 per cent per year and 8.4-8.5 per cent at TP Bank, VIB and … [Read more...] about Banks raise deposit rates but only short-term
China banks showing too-connected-to-fail link with shadow loans
Du Ronghai received an urgent phone call from his private banker at Industrial & Commercial Bank of China Ltd. about an investment opportunity promising a 10 percent annual return. Only for the privileged few, he was told. Du, who owns an apparel manufacturer in southern China, said he hopped on a plane the next morning for a four-hour flight from his home city of Harbin. That afternoon, at an ICBC office in Guangzhou, he looked at the sales contract he was required to read in person and invested 3 million yuan ($488,000), his first foray into the high-yield world of shadow banking. The employee kept telling him the product, called a trust, was so good that bank staff were pooling money to buy it, he said. "I knew nothing about it, but the return was very, very tantalizing, and the way they presented it was like if I don’t buy it now, someone else will grab it in seconds," said Du, who at the time, about two years ago, had almost 30 million yuan parked at Beijing-based ICBC … [Read more...] about China banks showing too-connected-to-fail link with shadow loans
State Bank chief has full plate
Reducing Vietnam's lending interest rate, stabilising the VND/USD exchange rate and consolidating the bulky system of credit institutions are all high on newly-elected State Bank Governor Nguyen Van Binh's agenda. VIR's Nguyen Hanh talks with banking and financial expert Dr. Nguyen Tri Hieu to find out how Binh can approach these tasks. Bankers and enterprises now have their sights firmly set on the lending interest rate after Binh promised to bring the rates down to 17-19 per cent in September. Can the governor make good on his promise? The promise the new governor made is encouraging, but I think it won't be easy to put the plan into action and achieve the promised results. September is looming and we have only about a month to reduce the interest rate from the current level of 20-21 per cent to 17-19 per cent. For the banks, to change the interest rate structure in such a short period of time is a difficult task. Secondly, gold and the US dollar prices are climbing. I … [Read more...] about State Bank chief has full plate
HD Bank becomes the first Vietnamese IPO bank in 2018
The Hanoitimes - 2017 is considered as a successful year for the stock market with VN-Index increased over 40% to nearly 1,000 points. This is one of the main reasons for banks to go public. HD Bank listed more than 980 million shares on the Ho Chi Minh City Stock Exchange (HOSE) on January 5. Before the listing, foreign investors had spent nearly US$ 300 million to own 21.5% of HD Bank’s chartered capital for price of VND 32,000 per share. With the initial offering price of VND 33,000 per share, HD Bank is valued at VND 32.4 trillion (or US$1.43 billion), thus becoming one of 20 largest companies on HOSE. HD Bank became the first commercial bank in Vietnam making IPO this year. This marks Vietnam's first listing of a bank this year. The country's banking sector, which includes state-owned entities, is being pushed to reform and modernize. It has seen progress after some delays. In 2017, 5 other banks have listed their respective shares on the stock market … [Read more...] about HD Bank becomes the first Vietnamese IPO bank in 2018