Some mid-sized commercial joint stock banks recently raised interestrates on short-term dong deposits amid rising credit demands.
HDBankhas increased its rates by 0.3 percentage to 5 percent per year onone-month deposits, 5.7 percent on terms between six and 11 months, and6.5 percent on deposits above 12 months.
DongA Bank pushed its interest rates by 0.1-0.3 percentage, while deposit rates at Eximbank were revised by 0.2-0.4 percentage.
Therise came a few weeks after some large lenders such as Agribank and ACBannounced increases in their interest rates on long-term dong depositsto improve liquidity amid the pressure of a stronger US dollar.
Interest rates on deposits above 12 months are currently one percentage higher than the deposits for other terms.
Attemptingto lure depositors, private commercial joint stock banks are currentlyoffering interest rates of roughly 0.8 percent higher than that byState-owned commercial joint stock banks.
According to Tuoi tre(Youth) newspaper, Truong Van Phuoc, Vice Chairman of the NationalFinancial Supervision Commission (NFSC), noted that banks had raisedinterest rates to improve liquidity and it was a normal practice and nota basis for them to hike lending rates accordingly.
Financialexpert Nguyen Tri Hieu observed that although inflation remained stable,with CPI in May rising 0.16 percent over the previous month and up 0.95percent year-on-year, a stronger US dollar recently affected capitalmobilisation as some people withdrew their dong savings to buy thedollar; hence, banks had to raise dong deposit rates to attract capital.
The NFSC last month said that deposit rates were under pressureand set to rise as the growth rate of deposits had been lower than thatof credit.
The total deposits rose 0.98 percent in the firstquarter, while the total outstanding loans increased 1.7 percent, inwhich outstanding loans in dong climbed 2.4 percent and outstandingloans in foreign currencies dropped 0.9 percent, NFSC said.
As aresult, the loan-to-deposit ratio rose to 84 percent from 83 percent inDecember 2014, of which LDR in foreign currencies climbed to 87 percentfrom 83.4 percent at the end of 2014, the NFSC reported.
Experts said that the deposit interest rate rise was a positive signal as it showed that capital demands were recovering.
Accordingto statistics from the State Bank of Vietnam, credit growth in thefirst five months this year rose 4.8 percent, much higher than the 2.3percent hike in the same period last year.-VNA
HDBankhas increased its rates by 0.3 percentage to 5 percent per year onone-month deposits, 5.7 percent on terms between six and 11 months, and6.5 percent on deposits above 12 months.
DongA Bank pushed its interest rates by 0.1-0.3 percentage, while deposit rates at Eximbank were revised by 0.2-0.4 percentage.
Therise came a few weeks after some large lenders such as Agribank and ACBannounced increases in their interest rates on long-term dong depositsto improve liquidity amid the pressure of a stronger US dollar.
Interest rates on deposits above 12 months are currently one percentage higher than the deposits for other terms.
Attemptingto lure depositors, private commercial joint stock banks are currentlyoffering interest rates of roughly 0.8 percent higher than that byState-owned commercial joint stock banks.
According to Tuoi tre(Youth) newspaper, Truong Van Phuoc, Vice Chairman of the NationalFinancial Supervision Commission (NFSC), noted that banks had raisedinterest rates to improve liquidity and it was a normal practice and nota basis for them to hike lending rates accordingly.
Financialexpert Nguyen Tri Hieu observed that although inflation remained stable,with CPI in May rising 0.16 percent over the previous month and up 0.95percent year-on-year, a stronger US dollar recently affected capitalmobilisation as some people withdrew their dong savings to buy thedollar; hence, banks had to raise dong deposit rates to attract capital.
The NFSC last month said that deposit rates were under pressureand set to rise as the growth rate of deposits had been lower than thatof credit.
The total deposits rose 0.98 percent in the firstquarter, while the total outstanding loans increased 1.7 percent, inwhich outstanding loans in dong climbed 2.4 percent and outstandingloans in foreign currencies dropped 0.9 percent, NFSC said.
As aresult, the loan-to-deposit ratio rose to 84 percent from 83 percent inDecember 2014, of which LDR in foreign currencies climbed to 87 percentfrom 83.4 percent at the end of 2014, the NFSC reported.
Experts said that the deposit interest rate rise was a positive signal as it showed that capital demands were recovering.
Accordingto statistics from the State Bank of Vietnam, credit growth in thefirst five months this year rose 4.8 percent, much higher than the 2.3percent hike in the same period last year.-VNA
