Abundant liquidity while credit growth is low, causing many banks to race to lower deposit interest rates – Photo: NGOC PHUONG
Notably, in the list of deposit interest rate reductions this time, there are a series of small-scale banks such as NCB, GPBank, Oceanbank…
According to the new interest rate schedule announced today, National Citizen Commercial Joint Stock Bank (NCB) reduced deposit interest rates for terms from 1 – 12 months with a reduction of 0.1 – 0.2%/year, depending on the term. The sharpest decrease is for terms from 1 to 5 months.
After adjustment, the 12-month term interest rate at NCB is 5.7%/year. The highest deposit interest rate applicable for terms of 15 – 60 months is 6%/year.
Oceanbank reduces interest rates with the highest reduction of up to 0.3%/year, applicable to terms of 3 – 5 months and 6 – 8 months.
Meanwhile, interest rates for 12 – 36 month terms simultaneously decreased by 0.2%/year to 5.8%/year. This is also the highest interest rate at Oceanbank at this time.
Global Petroleum Bank (GPBank) also reduced interest rates by 0.2 – 0.3%/year. After adjustment, the deposit interest rate for the 6-month term is 5.25%/year, the 9-month term is 5.35%/year, the 12-month term is 5.45%/year, and the 13-36 term is month to 5.55%/year.
The average interbank interest rate most recently announced by the State Bank – Screenshot
In the group of large-scale commercial joint stock banks, Vietnam Technological and Commercial Bank (Techcombank) also reduced interest rates for long terms from 12 – 36 months, bringing this term interest rate to 5.15%/year.
Since the beginning of November until now, more than 20 banks, both large and small, have reduced deposit interest rates. Some banks have reduced interest rates for the second time this month.
On the contrary, some banks, after reducing interest rates too deeply, slightly increased deposit interest rates in some terms to preserve capital. For example, Orient Bank (OCB) increased interest rates for terms from 18 – 36 months.
Bank for Investment and Development of Vietnam (BIDV) increased interest rates for terms from 6 – 36 months, Vietnam International Bank (VIB) increased interest rates for term deposits from 2 – 5 months.
Recently, the financial market has recorded positive information.
After 35 consecutive issuance sessions with a total scale of 360,345 billion VND, the State Bank stopped offering T-bills from November 9 and pumped a large amount of liquidity into the banking system when old batches of T-bills mature one after another.
As of the end of today’s session, the amount of outstanding bills has decreased to 97,050 billion VND. These bills will continue to mature from now until early December.
The large amount of maturing bills and the State Bank stopping issuing new bills caused the average VND overnight interbank interest rate to drop to 0.18%/year, equal to the period before the Bank State banks suck money back through the bill channel. Exchange rates have dropped nearly 2% since the beginning of November.
According to experts, the US Federal Reserve’s (Fed) temporary suspension of interest rate increases and lower-than-expected US inflation will help reduce pressure on exchange rates. This helps the State Bank have more room to maintain loose monetary policy to boost the economy.
