Joint stock banks rush to push up dong deposit rates
Opening a new week, the market received a series of information on raising the dong deposit rates with new highs. The deposit rate race among banks, which smouldered from April, now officially breaks out when banks continuously offered new interest rate benchmarks in short time.
Yesterday June 1, Southeastern Asia Commercial Joint Stock Bank (SeABank), Vietnam International Bank (VIB Bank), Vietnam Thuong Tin Commercial JS Bank (VietBank) all increased deposit rates of some terms, or issue certificate of deposits with impressive rates.
Particularly, the one month deposit rate of the dong at SeABank was raised from 7.2 percent to 7.44 percent pa, three months from 7.8 percent to 8.04 percent pa, six months from 8.1 percent to 8.34 percent a year, nine months from 8.4 to 8.64 percent, 12 months from 8.55 to 8.79 percent pa, 18 months from 8.7 to 8.94 percent, and 24 months from 9.0 to 9.24 percent pa.
At VietBank, the dong deposit rates for all terms surged by 0.25-0.40 percent pa. At VIB, the C/Ds in dong issued from June 1 to July 16, 2009 jumped to 9.55 percent pa at highest with the plus of 0.3 percent and 0.45 percent pa for terms of 24-36 months.
Notably, these banks just applied the new rate benchmark during the last a half of month.
Similarly, last weekend Orient Commercial JS Bank (OCB) decided to hike 0.1-0.6 percent pa for longer seven month dong deposits whereby the 7-9 month deposits carry a new interest rate of 8.3 percent pa, 10-11 months at 8.4 percent pa, 12-13 months at 8.6 percent, 18 months at 8.8 percent, 24 months at 9.1 percent pa. Even, the bank’s 36-month deposit rate was pushed up to 9.3 percent a year.
The maximum dong deposit rate was defined at 9.8 percent pa that was applied on 36-month deposits of HCM City Housing Development Commercial Joint Stock Bank (HDBank) from May 28. The bank also applied high rates for other terms, like 4 months at 8.4 percent pa, five months at 8.45 percent pa, six months at 8.6 percent, 7-24 months ranging between 8.65 and 9.5 percent a year.
As well, the gold deposit rate of HDBank was adjusted to 4.6 percent pa for a term of three months, 3.7-4.5 percent pa for terms of 6-24 months.
Thus, till June 1, many commercial banks officially pushed the dong deposit rate to exceed the 9 percent pa threshold. As a result, when the deposit rate peaked at 9.8 percent pa, the lending rate climbed to 10.5 percent pa while consumer lending rate was recorded at 16.5 percent pa.
On the interbank market, the 12-month loan rate soared by 1.16 percent to 8.9 percent a year.
Last week, State Bank of Vietnam (SBV) also decided to loosen the valuable paper mortgage lending terms aiming to support the banks with temporary liquidity shortage.
Category: Finance
