They are Vietcombank, BIDV, Agribank and Vietinbank, whose decision will take effect on January 10. Agribank Chairman, Trinh Ngoc Khanh, stated that the rates on loans to agriculture, export, supporting industries, high technology and small and medium-sized businesses will be cut by 0.5 percentage points. A similar rate cut will also be made by Vietinbank and Vietcombank, meaning the maximum lending rates will be no higher than 6% per year. Lower interest rates are expected to eat into the banks’ profits, with Vietinbank and Vietcombank seeing their profits decrease by VND700 billion (US$30.1 million) and VND450 billion (US$19.35 million) respectively. The earnings of Agribank are also expected to decrease by millions of US dollars. But Vietcombank Chairman, Nghiem Xuan Thanh, stated that the rate cuts will be practical actions, reflecting Vietcombank’s commitment to proactively implement the government’s policies for the sake of overall economic development. … [Read more...] about Four Vietnamese banks cut rates to boost economy
Vietnamese bank interest rate
New US interest rate to exert pressure on Vietnam’s inflation goal
By Dat Nguyen  September 29, 2018 | 08:58 pm GMT+7 An employee counting U.S. banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Anh Tu The recent increase in U.S. interest rate will generate pressure on the Vietnamese dong and make inflation target hard to meet, experts warn. The U.S. Federal Reserve lifted interest rates for the third time this year by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent on Wednesday, foreseeing another rate hike in December. Economist Nguyen Tri Hieu said this increase will pressure the USD-VND exchange rate, as the dollar strengthens further over the dong. Local banks will push their interest rates up to prevent their customers from exchanging local currency to the U.S. dollar, he told VnExpress International. Imports will be priced higher in VND, pushing the consumer price index (CPI) higher, Hieu said. “It is very likely that CPI will surpass the country’s goal of 4 percent for the … [Read more...] about New US interest rate to exert pressure on Vietnam’s inflation goal
Most Vietnamese banks maintain reasonable credit growth in face of credit quota
The Hanoitimes - As Vietnamese banks were given credit quota since the beginning of the year, only Tien Phong Bank (TPBank) and Ho Chi Minh Development Bank (HDBank) have filled up their credit quota. Many banks maintained reasonable credit growth as of June, which is in line with their guidance and granted limits, stated a recent report by Viet Dragon Securities Company (VDSC). Meanwhile, others have pushed lending, with credit growth exceeding 10%, even reaching their lending cap. The remaining credit growth allowance for those in the second half of the year is very limited. Banks with highest credit growth rates in the January - June period are TPBank with 15%, HDBank (14.5%), which already reached their quota (both at 15%), followed by LienVietPost Bank (13.3%) and Orient Commercial Bank, or OCB, (12.2%). These four banks have set very high credit growth targets for the entire year, at 20%, even 40% as in HDBank's case, which are much higher than initial quota … [Read more...] about Most Vietnamese banks maintain reasonable credit growth in face of credit quota
Lending interest rate in inter-bank market hits six-month high
The interest rate for Vietnamese đồng loans in the inter-bank market has hit the highest level since the beginning of this year due to high demand. - Photo nhadautu.vnViet Nam News The rates for one-week, two-week and one-month loans were 3.5 per cent, 3.58 per cent and 3.78 per cent, up 2.11, 2.07 and 2.02 percentage points, respectively. Last week, the State Bank of Việt Nam (SBV) also offered bills at five auctions at higher interest rates (at 1.75 per cent and 2.25 per cent for 28-day and 91-day bills) to withdraw money from commercial banks, however, no auction was successful. In the inter-bank market, the interest rates for US dollar loans last week also inched up, ending the week at 2.13 per cent for overnight loans, 2.23 per cent for one-week loans, 2.33 per cent for two-week loans and 2.47 per cent for one-month loans. Industry insiders attributed the decline in the đồng liquidity at commercial banks last week to banks using … [Read more...] about Lending interest rate in inter-bank market hits six-month high
SBV takes measures to reduce lending interest rates
(VEN) - The State Bank of Vietnam (SBV) has taken various measures in order to lower lending interest rates. The Southeast Asia Joint Stock Commercial Bank (SeABank) is providing preferential loans for enterprises worth VND1.5 trillion. Accordingly, SeABank charges annual lending rates of 7.5 percent for three-month loans and 8.0 percent for six-month short-term loans in Vietnamese dong. The bank also gives out short-term US dollar loans at an annual interest rate of 3.0 percent for six months. The program aims to provide enterprises with short-term loans to supplement working capital for trade and production activities. PGBank is offering lending interest rates for individual customers of 9.49 percent a year for short-term loans; and 7.49 percent a year in the first six months, 8.99 percent a year in the first 12 months, and 9.49 percent a year in the first 24 months for medium- and long-term loans. TPBank is giving interest rates of 7.2 percent a year in the first six months for … [Read more...] about SBV takes measures to reduce lending interest rates