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Four state-owned banks cut deposit rates

By N.Tan

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HCMC – Vietnam’s big four state-owned commercial banks today, March 15, lowered their 12-month-term deposit interest rate by 20 basis points to 7.2%, just a day after the central bank decided to lower key interest rates.

The four banks are the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for Investment and Development of Vietnam (BIDV), and the Vietnam Bank for Agriculture and Rural Development (Agribank).

This is the lowest same-term deposit interest rate in the banking system, effectively allowing the four banks to offer loans at lower interest rates.

The deposit interest rate reduction by the Big Four is in response to the State Bank of Vietnam’s (SBV) interest rate cuts by 0.5 to one percentage point, which came into force today, March 15.

Under the SBV’s Decision 313/QD-NHNN, the rediscount rate is down from 4.5% to 3.5% per year.

Currently, only two banks offer deposit interest rates above 9% per year for the 12-month term, which are VietBank (9.2%) and ABBank (9.1%).

Many other banks offer deposit rates ranging from 8.4% to 8.9% per year for the same term.

The central bank explained that the interest rate cuts are a solution under the current market conditions to back the National Assembly’s and Government’s economic recovery efforts and help ease difficulties for businesses and the national economy.

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