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
Inter-bank interest rates rise to two-year highs
Inter-bank interest rates rise to two-year highs Duc Nam By Duc Nam - The Saigon Times Daily HCMC – Interest rates on the inter-bank market have surged to two-year highs, an indication that the banking system’s liquidity is dwindling ahead of the Lunar New Year holiday (Tet). According to a report of Bao Viet Securities Company (BVSC), interest rates for loans in the Vietnam dong last week edged up for eight weeks in a row and hit the highest in two years. They have stayed high over the past two months and the upward spiral is seen continuing. Overnight to one-week rates climbed by 20 basis points to 5.23% per annum while one-week and two-week loans saw their rates adding 18 basis points at 5.25% per year. The State Bank of Vietnam (SBV) net injected nearly VND16.13 trillion (around US$720 million) into the system via open market operations (OMO), including over VND2.11 trillion for the 14-day tenor, VND3.18 trillion for the 28-day tenor and nearly VND10.84 trillion … [Read more...] about Inter-bank interest rates rise to two-year highs
Interest rates remain the same while consumer prices soar
Both Vietnam's state-run and joint-venture banks have not yet decided whether to increase the Vietnamese dong interest rates in order to cope with soaring consumer prices, said some banks' senior officers recently. High interest rates are seen as a weapon to curb increased consumer prices, but "currently, we do not have any plans to raise VND interest rates," stated Mr. Phan Dao Vu, first Deputy General Director of Indovina Bank (a joint venture bank between Industrial and Commercial Bank of Vietnam and United World Chinese Commercial Bank). Other banks' leaders also expressed the same opinion. … [Read more...] about Interest rates remain the same while consumer prices soar
High bank interest rates, high production costs for businesses
VietNamNet Bridge - Higher dollar, higher loan interest rates, higher prices of input materials and weak purchasing power all have made businesses worried. Businessmen have also said that any measure adopted by the central bank to cope with high inflation will result in an increase in both deposit and lending interest rates. … [Read more...] about High bank interest rates, high production costs for businesses
Vietnamese banks safe from global financial crisis
Vietnamese banks will not be affected by the financial crisis currently engulfing the US , the Governor of the State Bank of Vietnam (SBV) Nguyen Van Giau said on September 30. The governor told a press briefing held by the Government Office that the SBV has closely monitored the operations of commercial banks and will continue to intervene in the foreign exchange market to ensure liquidity for the banking system as well as the national economy. Vietnamese banks, including foreign, joint venture, commercial state-owned and commercial joint stock banks, have moved to actively avoid the crisis, Giau further said. According to Giau, a redundancy of liquidity has been recently observed at Vietnamese banks, reaching 40 trillion VND on the day and ranging between 30-35 trillion VND on previous days. Inter-bank interest rates were reduced to 12 percent per annum for one-or two-week loans as a result of high liquidity. The State Bank Governor said that Vietnam ’s foreign currency … [Read more...] about Vietnamese banks safe from global financial crisis