Deposit rates down
28-AUG-2008 Intellasia | Dau Tu Chung Khoan page 23
Aug 28, 2008 - 7:00:00 AM
|
Reported August CPI rose by 1.56% only, which could be a lower rate in remaining months when the domestic fuel retail price was down 1,000 dong a litre. In addition to the rally of monetary market, a slew of banks reduced deposit rates, in which notably long-term deposit rates were cut down to the common level of 17.5% per annum instead of the previous 18% pa.
During the first half of August alone, SeABank lowered deposit rates in both dong and US dollar for two times. The bank's highest deposit rate of dong (progressive interest rate included) was lowered to 18.36% pa for a term of three months. Most of banks including state lenders and joint stock banks recently were rush to cut deposit rates whereby week-term deposit rates were abolished or reduced to 13-15.5% pa while US dollar deposit rates remained at over 6% a year.
On August 23, EAB continued cutting down long-term deposit rates. Accordingly, the interest rate of deposits with terms of 3-12 months of EAB was down to 18-18.1% pa against the highest level of 18.5% previously, 13-36 months declining to 17.5-17.6% pa, and shorter terms of 1-2 months carrying 17.5-17.6% pa also. Tran Phuong Binh, EAB's general director said, if CPI continues to be limited at low level and the finance market keeps stable, deposit rate reductions will absolutely be concerned with an aim to reduce banks' cost.
Earlier, on August 18, Sacombank also changed the interest rate benchmark with lower deposit rates for both dong and US dollar. At present, the bank's highest dong interest rate is approximately 18% pa, US dollar at 5.5% pa for a term of 13 months and 3.6% pa for gold deposits. As compared with July, many banks still maintained 7% pa for 12-month US dollar deposit and 6.5% pa for gold deposit, showing that banks' transparency is not worrying any more.
A representative from a bank said that the market will witness many changes in deposit rates between now and the year end and the highest interest rate is forecasted at 18% pa. From the fourth quarter of this year, the economy will be more stable so banks could offer the interest rate of 13.8% pa for terms of over six months. This is the positive signal for the macro-economy and inflation curbing policies.
According to Vo Van Chau, general director of Orient Commercial Bank (OCB), in Jan-Jul, banks especially small sized banks were propelled to hike deposit rates to ensure transparency and keep market shares. Thus, at this time when the monetary market is gradually stable and inflation is limited partially, banks are calculating to cut down input costs.
As reported by HCM City Statistic Department, after the lending rate was increased closer to the allowable ceiling limit, this month's outstanding loans declined 2.5% month on month while capital mobilisation surged 2.7%. HCM City based banks raised 542 trillion dong deposits by the start of August.
|
| |
|  |
|
Advertising
