Banks have continued to slashdeposit interest rates amidst good liquidity and slow credit growth.
Accordingto the latest mobilising rates at ACB, one- to two-month deposit rateshave dropped to only 5.5 percent yearly, down to 0.4 percent compared tothe previous rate. The three-month rate fell to 5.6 percent yearlycompared to 6 percent earlier.
The interest rates of long-termdeposits also fell sharply. The six-month rate fell from 6.55 percentyearly to 6.1 percent; the nine-month rate fell from 6.6 percent yearlyto 6.3 percent; and the 12-month rate fell from 7.7 percent to 6.9percent.
Sacombank also cut deposit interest rates slightly. Theseven- to eight-month rates fell from 6.55 percent yearly to 6.4percent; the nine-month rate fell from 6.7 percent yearly to 6.5percent; and the 11-month rate fell from 6.8 percent yearly to 6.7percent.
According to the banks, as the competition for lendingamong banks is now fierce, a further reduction in deposit interest ratesis intended to cut costs for more attractive lending rates.
Datafrom the central bank revealed that deposits rose 3.09 percent by April20, while credit growth was only 0.62 percent, much lower than 2.11percent of the same period last year.
In the interbank market,interest rates have also continued to slide for short-term deposits. Theovernight rate on May 6 stood at 1.65 percent yearly, down to 0.15percentage points against last week. One-week term rate also declined0.15 percentage points to 1.9 percent yearly. The declining rate fortwo-week terms was 0.3 percentage points.
Industry insidersforecast that interest rates will continually reduce soon as there areno optimistic signs for the abundant deposits at banks.-VNA