Deposit interest rate "breaks" the 7%/year mark
Deputy Governor of the State Bank Pham Thanh Ha said that the State Bank has implemented many synchronous measures to strive to reduce lending interest rates to remove difficulties for businesses and people in accordance with the direction of the National Assembly and the Government in Resolution 43 and Resolution 11, such as encouraging credit institutions to reduce costs to stabilize lending interest rates to support businesses to recover and develop production and business.
To support businesses to overcome difficulties, since March 15, the State Bank has reduced operating interest rates three times in a row.
Deputy Governor Pham Thanh Ha said the State Bank has worked with commercial banks to propose further interest rate reductions to support businesses and the economy in recovering production and business in February and May.
The average new VND lending interest rate of commercial banks is about 9.07%/year (down 0.9%/year compared to the end of 2022). Illustrative photo
According to information from the State Bank, currently, the average new deposit interest rate of commercial banks is about 6.1%/year (down 0.37%/year compared to the end of 2022).
6.1% is the average figure. In fact, after the third reduction in operating interest rates (May 24), the ceiling interest rate for terms under 6 months has dropped below 5%/year, many banks have "broken" the interest rate mark of 7%/year.
Specifically, the group of four banking giants no longer maintains the 7%/year interest rate for long terms.
At the Joint Stock Commercial Bank for Foreign Trade of Vietnam ( Vietcombank ), the highest interest rate has dropped sharply from 7.2%/year to only 6.8%/year, applied to terms from 12 months to 60 months. For a 6-month term, the interest rate is 5.5%/year. Under 6 months, the interest rate is 4.6%/year (3-month term), 4.1%/year (1 and 2-month terms).
The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) also listed the highest rate at only 6.8%/year (term from 12 months to 60 months). 5.5%/year is applied for terms of 6 months and 9 months. For terms of 3 months and 5 months, the interest rate is 4.1%/year.
Not only state-owned banks, some joint-stock commercial banks also pushed the highest interest rate down to below 7%/year such as Vietnam Technological and Commercial Joint Stock Bank - Techcombank (6.7%/year for 12-month term), DongA Commercial Joint Stock Bank - DongA Bank (6.7%/year for 12-month term),...
New loan interest rate is only 9.07%
Lower deposit interest rates are good room to reduce lending interest rates.
Deputy Governor Pham Thanh Ha said credit institutions have been taking measures to reduce lending interest rates to support businesses, people and the economy to restore production and business.
Based on the management and direction of the State Bank, up to now, the interest rate level has basically stabilized, and newly arising interest rates tend to gradually decrease in the first month of 2023.
The average new VND lending interest rate of commercial banks is about 9.07%/year (down 0.9%/year compared to the end of 2022).
Not only reducing lending rates for new loans, the banking system has planned to reduce lending rates for old loans.
Currently, commercial banks are expected to reduce lending interest rates by 0.3-0.5% for all existing customers, effective from May 29. The group expected to reduce interest rates next week will focus on private banks that have not adjusted interest rates for old loans since the beginning of the year.
In the coming time, Deputy Governor Pham Thanh Ha said that the State Bank will continue to closely monitor domestic and international currency developments, forecast inflation and market interest rates to manage interest rates in accordance with macroeconomic balance, inflation and monetary policy targets.
“The State Bank will continue to have solutions to encourage credit institutions to reduce costs to reduce lending interest rates to support businesses to recover and develop production and business,” Deputy Governor Pham Thanh Ha affirmed.
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