Many banks have raised deposit rates over the past few weeks to improve liquidity amid the pressure of a stronger US dollar.
VietnamBank for Agriculture and Rural Development (Agribank) was the latestamong them to take the measure, raising its long-term Vietnamese dongdeposit rates by 0.3-0.5 percent per year as of June 2.
Accordingly,Agribank raised deposit rates for individuals from 6.2 percent to 6.5percent per year for an 18-month term and from 6.3 percent to 6.8percent per year for a 24-month term. For organisational customers, thebank also lifted its 24-month deposit rate from 6.3 percent to 6.8percent per year.
Previously, Asia Commercial Bank (ACB) alsolifted its deposit rates for 6-36 months by 0.2 percent from May 25. Thedeposit rate for the 36-month term is the highest, 6.7 percent peryear. Meanwhile, the 12-month and 24-month rates are at 6.2 percent and6.5 percent per year, respectively.
Similarly, on May 21,Eximbank raised its deposit rates for some terms and the highest rate of6.9 percent has been for a 36-month term. Meanwhile, the 18-month and24-month rates are at 6.6 percent and 6.7 percent, respectively.
Several other banks have also lifted deposit rates slightly.
ACB'sChief Executive Officer (CEO) Do Minh Toan told online newspaperVnexpress that the move was just to balance capital source and will notaffect lending rates considerably.
According to Tuoi tre (Youth)newspaper, Truong Van Phuoc, Vice Chairman of the National FinancialSupervision Commission (NFSC), attributed that banks had raised depositinterest rates to improve liquidity and this was a normal action and nota basis for them to hike lending rates accordingly.
Financialexpert Nguyen Tri Hieu observed that although inflation remained stable,with CPI in May rising 0.16 percent over the previous month and up 0.95percent year-on-year, somehow a stronger US dollar recently affectedcapital mobilisation as some people withdrew their dong savings to buythe dollar; hence, banks had to raise dong deposit rates to attractcapital.
Last week, the National Financial Supervisory Commission(NFSC) said that deposit rates were under pressure and set to rise asthe growth rate of deposits had been lower than that of credit.
Accordingto the NFSC, total deposits rose 0.98 percent in the first quarter, inwhich deposits in the dong rose 1.9 percent and deposits in foreigncurrencies fell 4.9 percent. Total outstanding loans, meanwhile,increased 1.7 percent, in which outstanding loans in dong climbed 2.4percent and outstanding loans in foreign currencies dropped 0.9 percent.
Asa result, the loan to deposit ratio (LDR) rose to 84 percent from 83percent in December 2014, of which LDR in foreign currencies climbed to87 percent from 83.4 percent at the end of 2014, the NFSC reported.-VNA
VietnamBank for Agriculture and Rural Development (Agribank) was the latestamong them to take the measure, raising its long-term Vietnamese dongdeposit rates by 0.3-0.5 percent per year as of June 2.
Accordingly,Agribank raised deposit rates for individuals from 6.2 percent to 6.5percent per year for an 18-month term and from 6.3 percent to 6.8percent per year for a 24-month term. For organisational customers, thebank also lifted its 24-month deposit rate from 6.3 percent to 6.8percent per year.
Previously, Asia Commercial Bank (ACB) alsolifted its deposit rates for 6-36 months by 0.2 percent from May 25. Thedeposit rate for the 36-month term is the highest, 6.7 percent peryear. Meanwhile, the 12-month and 24-month rates are at 6.2 percent and6.5 percent per year, respectively.
Similarly, on May 21,Eximbank raised its deposit rates for some terms and the highest rate of6.9 percent has been for a 36-month term. Meanwhile, the 18-month and24-month rates are at 6.6 percent and 6.7 percent, respectively.
Several other banks have also lifted deposit rates slightly.
ACB'sChief Executive Officer (CEO) Do Minh Toan told online newspaperVnexpress that the move was just to balance capital source and will notaffect lending rates considerably.
According to Tuoi tre (Youth)newspaper, Truong Van Phuoc, Vice Chairman of the National FinancialSupervision Commission (NFSC), attributed that banks had raised depositinterest rates to improve liquidity and this was a normal action and nota basis for them to hike lending rates accordingly.
Financialexpert Nguyen Tri Hieu observed that although inflation remained stable,with CPI in May rising 0.16 percent over the previous month and up 0.95percent year-on-year, somehow a stronger US dollar recently affectedcapital mobilisation as some people withdrew their dong savings to buythe dollar; hence, banks had to raise dong deposit rates to attractcapital.
Last week, the National Financial Supervisory Commission(NFSC) said that deposit rates were under pressure and set to rise asthe growth rate of deposits had been lower than that of credit.
Accordingto the NFSC, total deposits rose 0.98 percent in the first quarter, inwhich deposits in the dong rose 1.9 percent and deposits in foreigncurrencies fell 4.9 percent. Total outstanding loans, meanwhile,increased 1.7 percent, in which outstanding loans in dong climbed 2.4percent and outstanding loans in foreign currencies dropped 0.9 percent.
Asa result, the loan to deposit ratio (LDR) rose to 84 percent from 83percent in December 2014, of which LDR in foreign currencies climbed to87 percent from 83.4 percent at the end of 2014, the NFSC reported.-VNA
