Representatives from 21 commercial banks gathered in Hanoi to discuss the interest rate (Photo: vneconomy) Hanoi (VNA) - Representatives from 21 commercial banks have gathered in Hanoito discuss the interest rate, affirming that, so far, they are feeling nopressure on the issue.
Atthe meeting, representatives from the country’s four largest banks -Vietcombank, VietinBank, BIDV and Agribank - said they had not increased interestrate till date this year.
LeDuc Tho, General Director of Vietinbank, said deposit and lending interestrates at his bank have remained stable and would continue to be steady in thecoming months. The rate for dong deposits has remained unchanged sinceSeptember last year.
PhamThanh Ha, Deputy General Director of Vietcombank, said the bank’s ratio ofshort-term funds for medium- and long-term loans was currently lower than 30 percent.
“Wetherefore have no pressure to raise medium and long-term capital mobilisation,”Ha said.
Representativesfrom Techcombank, Military Bank, SHB and TPBank also affirmed they had nothiked interest rate in the first quarter and did not for the moment have anyplans to raise the rate.
Otherbanks, such as VPBank, HDBank, VIB and Sacombank, which increased the rate inthe first quarter, said there was no pressure on liquidity. The hike was partof banks’ standard operation to meet business plans, they said.
PhamQuoc Thanh, deputy general director of HDBank, said his bank in the firstquarter inched up interest rate for 6-11 month deposits by 0.2-0.3 percentagepoints per year against the end of 2016 only to maintain its market share, andnot because of liquidity pressure.
Meanwhile,VIB deputy general director An Thanh Son said his bank had increased interestrate for above 12 month deposits by 0.3 percentage points per year in Q1 as VIBbelonged to the bank group that usually offered low interest rates.
Besidesthis, he said the hike was to meet VIB’s retail development strategies andfollow the central bank’s regulations on reducing the ratio of short-term fundsfor medium- and long-term loans from 60 percent to 40 percent, applicable in2018.
Sonalso affirmed that the bank’s interest rate adjustment was a standard process.
Previously,in March, after some banks sharply increased long-term interest rates offeredon certificates of deposit to 8.2-9.2 percent per year, leading to concernsabout a rate hike race, the central bank made an announcement saying theadjustment was a standard procedure to fit banks’ business strategies. It saidsome banks could increase interest rates temporarily at this time, and couldthen lower the rates next time.
Atthe meeting on Tuesday, SBV Deputy Governor Nguyen Thi Hong asserted that thecentral bank would still pursue its target of keeping interest rates stable andtry to cut the rates if possible in the remaining months of the year.
Thecentral bank will closely monitor the monetary market to timely supportliquidity for commercial banks through open market operations and refinancing,she said.
Hongsaid the target of interest rate stabilisation would be closely integrated withthe recovery of bad debts and restructuring of the banking system.
Adraft law on supporting the banking system’s restructuring and recovery of baddebts would be submitted to the National Assembly’s meeting in May, she said.-VNA
Atthe meeting, representatives from the country’s four largest banks -Vietcombank, VietinBank, BIDV and Agribank - said they had not increased interestrate till date this year.
LeDuc Tho, General Director of Vietinbank, said deposit and lending interestrates at his bank have remained stable and would continue to be steady in thecoming months. The rate for dong deposits has remained unchanged sinceSeptember last year.
PhamThanh Ha, Deputy General Director of Vietcombank, said the bank’s ratio ofshort-term funds for medium- and long-term loans was currently lower than 30 percent.
“Wetherefore have no pressure to raise medium and long-term capital mobilisation,”Ha said.
Representativesfrom Techcombank, Military Bank, SHB and TPBank also affirmed they had nothiked interest rate in the first quarter and did not for the moment have anyplans to raise the rate.
Otherbanks, such as VPBank, HDBank, VIB and Sacombank, which increased the rate inthe first quarter, said there was no pressure on liquidity. The hike was partof banks’ standard operation to meet business plans, they said.
PhamQuoc Thanh, deputy general director of HDBank, said his bank in the firstquarter inched up interest rate for 6-11 month deposits by 0.2-0.3 percentagepoints per year against the end of 2016 only to maintain its market share, andnot because of liquidity pressure.
Meanwhile,VIB deputy general director An Thanh Son said his bank had increased interestrate for above 12 month deposits by 0.3 percentage points per year in Q1 as VIBbelonged to the bank group that usually offered low interest rates.
Besidesthis, he said the hike was to meet VIB’s retail development strategies andfollow the central bank’s regulations on reducing the ratio of short-term fundsfor medium- and long-term loans from 60 percent to 40 percent, applicable in2018.
Sonalso affirmed that the bank’s interest rate adjustment was a standard process.
Previously,in March, after some banks sharply increased long-term interest rates offeredon certificates of deposit to 8.2-9.2 percent per year, leading to concernsabout a rate hike race, the central bank made an announcement saying theadjustment was a standard procedure to fit banks’ business strategies. It saidsome banks could increase interest rates temporarily at this time, and couldthen lower the rates next time.
Atthe meeting on Tuesday, SBV Deputy Governor Nguyen Thi Hong asserted that thecentral bank would still pursue its target of keeping interest rates stable andtry to cut the rates if possible in the remaining months of the year.
Thecentral bank will closely monitor the monetary market to timely supportliquidity for commercial banks through open market operations and refinancing,she said.
Hongsaid the target of interest rate stabilisation would be closely integrated withthe recovery of bad debts and restructuring of the banking system.
Adraft law on supporting the banking system’s restructuring and recovery of baddebts would be submitted to the National Assembly’s meeting in May, she said.-VNA
VNA
