Vietnamplus

Deposit interest rate in the second half of this year might be adjusted up some 0.3 to 0.5 percentage points, experts forecast.

The Vietnam Association of Financial Investors (VAFI) has proposed gradually lowering the VND deposit interest rate to zero percent.

Local banks have raised their interest rates in a move to attract depositors and increase their medium- and long-term capital.

Many commercial banks have recently increased deposit interest rates, but experts forecast that the rise will last only a short time and won’t have a domino effect on lending rates.

In contrast to Vietcombank’s move to cut deposit interest rate a week ago, two other large State-owned commercial banks -- Vietinbank and BIDV -- this week announced they were raising the rate.

Credit organisations lower deposit interest rate

Some big credit organisations, including State-owned commercial banks, lowered their interest rates for short-term deposits as from September 26, according to the State Bank of Vietnam (SBV).

Many commercial banks have recently raised their deposit interest rates in an attempt to satisfy new State Bank of Vietnam’s regulations that are due to take effect in 2017.

Many commercial banks have raised deposit interest rates over the past few weeks, generating concern about an imminent lending interest rate hike.

The Governor of the State Bank of Vietnam (SBV) on May 6 issued documents requesting strict compliance with the rules on ceiling USD deposit interest rate which is capped at 0 percent annually.

Recent rises in deposit interest rates are small and thus do not affect lending interest rate, according to the State Bank of Vietnam.

Some commercial banks have increased interest rates on Vietnamese dong (VND) deposits between 0.2 percent and 0.4 percent per year, making it the fourth rise since August this year.

The State Bank of Vietnam (SBV)’s surprising decision to cut the interest rates on USD deposits on September 27 was welcomed by economic experts, who said the move was a step towards many goals.

The State Bank of Vietnam (SBV) has lowered the interest rates for USD deposits from organisations and individuals (excluding credit institutions and foreign bank branches).