On December 19, commercial joint stock banks started to apply a new interest rate benchmark for dong deposits whereby the lowest dong deposit rate was 9% per annum.
One day earlier, Military Bank (MB) offered the highest deposit rate of 9% pa for terms of 12-14 months, and 8-8.33% pa for other terms. Generally, the dong deposit rate of MB was reduced by another 0.8-1.5% pa against the previous interest rate benchmark.
9% per annum is also one of the attractive levels of Saigon Thuong Tin Commercial JS Bank (Sacombank), which came into force since last Friday. Deposits with terms of 2, 3 and 13 months carry an interest rate of 9%, 9.5% and 12% pa while the term of one-month has a rate of 8.5% pa and all remaining deposit terms carry a lower rate of 8% pa.
At Asia Commercial Bank (ACB), all the dong deposit rates were cut down to 8% pa for all terms.
In comparison with state banks and Vietcombank, the above banks’ deposit rates are much lower.
Earlier, given explanation on the consecutive deposit rate reductions, a joint stock bank’s chair said that the banks’ working capital now is in surplus and therefore capital mobilisation is not under pressure unlike the previous two months.
In a study announced last week by HCM City Securities Joint Stock Co (HSC), the capital in the banking system is about 88 trillion dong in surplus which is the result of SBV’s three statutory reserve cuts. With this, HSC assessed, commercial banks can totally support 20-40 trillion dong for forthcoming G-bond issues if the government raises capital in line with the demand stimulus plan.
On the other hand, based on the forecast that the State Bank could continue cutting down basic rates and December CPI will keep falling, banks’ latest deposit rate reduction is a signal to welcome new changes in the banking finance market.