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Plentiful liquidity forces banks to lower deposit rates
Tuesday,  Apr 24, 2018,15:33 (GMT+7)

Plentiful liquidity forces banks to lower deposit rates

A client (R) transacts with a VPBank teller in this file photo. Many banks such as VPBank, VIB, and Military Bank have adjusted down deposit rates. PHOTO: TL

HCMC – Many banks such as Vietnam Prosperity Bank (VPBank), Vietnam International Bank (VIB), and Military Bank have adjusted down deposit rates given their ample liquidity, according to a Tien Phong newspaper report.

VPBank has reduced its interest rates by 20 basis points for savings of less than six months and those of between one and three years. The respective rate cuts for savings of six-seven months, and those of between eight and eleven months are 30 and 40 basis points.

VIB has lowered its annual deposit rates by 30 and 50 basis points for some terms. Those terms ranging from one to three months have their rates cut to 5-5.1%.

The bank has also revised down rates by 20-40 basis points for terms of more than six months. The six-month tenor comes with a rate of 6-6.3% per year.

Military Bank has revised down interest rates by 10-20 basis points compared with early February. The rate for the 12-month term remains unchanged at 7.2%. The respective rates for one, two, three-four, and six-month savings are 4.8%, 4.9%, 5.2% and 5.5%.

Military Bank Securities Company (MBS) said the interbank market saw interest rates for overnight and one-week tenors rising 4 and 2 basis points respectively to 0.74% and 0.89% annually between April 1 and 15.

Recently, the central foreign exchange rate has risen by VND17 to VND22,477 per U.S. dollar, allowing banks to sell the greenback at VND22,825.

The State Bank of Vietnam pumped VND10,390 billion (US$456 million) into the system between April 1 and 16 while there were no transactions in open market operations (OMO).

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Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
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