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| Gap between lending and deposit rates narrowed |
| 03/Jul/2009 Intellasia | Dien Dan Doanh Nghiep |
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| 3 Jul, 2009 - 10:32:06 AM |
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On June 30, State Bank of Vietnam's governor issued Decision No 1539/QD0NHNN to retain the basic rate of the dong at 7 percent a year and also announce the refinancing rate at 7 percent applied from July 1 rediscount rate at 5.0 percent pa.
Accordingly, the overnight interest rate of interbank electronic payment was 7 percent pa.
While the dong deposits now continue rising slightly, SBV's decision on basic rate will shorten the gap between the deposit and lending rates.
Compared with the first five months, the dong deposit rates from the middle of June tended to be more sustainable and only some banks kept raising interest rates gradually.
The highest deposit rate was offered by HCM City Housing Commercial Joint Stock Bank (HDBank) with 10.1 percent pa, and most joint stock banks applied the deposit rate of around 10 percent pa.
Many bankers said that the race of increasing the dong deposit rates among banks will continue in the near future. Banks need to consider the deposit rate problem to balance lending activity because the basic rate kept at 7 percent pa means that the maximum lending rate can be 10.5 percent pa.
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