The State Bank of Vietnam (SBV) slashed interest rates for the second time since September.(Photo: SBV)
Hanoi (VNA) - The State Bank of Vietnam (SBV) slashed interestrates for the second time since September.
Non-term deposit annual interest rate was reduced from 1.0 percent to 0.8 percent;under-6-month deposit from 5.5 percent to 5.0 percent.
Under the SBV's Decision 2416, the annual interest rate was slashed by half apercentage point to 6.0 percent for borrowers in priority sectors such asagriculture, export and supporting industries as well as hi-tech firms andsmall-to-medium-sized enterprises.
In response to the SBV's cut, commercial banks have adjusted their own rates.
Vietcombank announced on November 18 it has cut interest rates by half apercentage point for business borrowers of Vietnamese dong for the last twomonths of the year. The cut would also apply to all loans taken out sinceNovember 1.
For borrowers in priority sectors, Vietcombank’s ceiling interest rate wasreduced to 5.0 percent. This is the third time the bank has cut interest ratefor priority sector businesses this year. Each time the rate was slashed byhalf a percentage point for a total of 1.5 percent rate cut.
VietinBank slashed interest rates on deposits by 0.2 percent to 4.3-4.8 percentannually for 1-3 month and 5.3 percent for 6-9 month deposits.
Several other commercial banks also cut 0.1-0.3 percentage point for longer-termdeposits over 12 months./.
VNA
