By October 18, some more banks have started to carry out the consensus of the Vietnam Banking Association (VNBA) to reduce deposit interest rates to the maximum level of 11 percent per year, the state-run online newspaper VnEconomy reported on October 19.
According to the consensus among the banks members of VNBA, from October 15, dong deposit interest rates will retreat to a maximum of 11 percent per year, instead of the maximum 11.2 percent per year earlier.
However, on October 15, there were only some bank members that implemented this agreement, or some joint stock bank took the initiative to lower interest rates earlier.
On October 16, because some branches were still working on Saturday morning, some bank members decided to lower interest rates, such as Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Ocean Commercial Joint Stock Bank (Ocean Bank) and others.
By October 18, some more bank members officially joined the race to cut down the interest rates to a maximum of 11 percent per year, including of two state-owned creditors as Bank for Investment and Development of Vietnam Nam (BIDV) and Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank).
A noteworthy point is that the dong deposit rates of the above mentioned banks were put in a "new order" as they straight away pulled interest rates down to 11 percent per annum applied simultaneously to all other terms from 1 month to 36 months.
Particularly in Vietinbank, the maximum 11 percent was determined from 1 month to 12 months, from 10.5 percent - 10.8 percent per year for the period of over 12 months.
Thus, in the above mentioned banks, irrespective of joint stock, or state owned lenders, apart from the call or very short term as in weeks, there is now no the concept of "interest rate curve". Interest rates cannot be distinguished between high and low short-term maturity.
The above move indicated the competition of interest rates among banks as bank blocks are gradually narrowing interest rates, rather than the state-owned bank block used to offer low interest rates years ago, on the other hand, also showed the adjustment of interest rates in favour of respect for the consensus, while the mobilised capital demand is being still "stretched" in most of the periods without any discrimination.
According to the consensus among the banks members of VNBA, from October 15, dong deposit interest rates will retreat to a maximum of 11 percent per year, instead of the maximum 11.2 percent per year earlier.
However, on October 15, there were only some bank members that implemented this agreement, or some joint stock bank took the initiative to lower interest rates earlier.
On October 16, because some branches were still working on Saturday morning, some bank members decided to lower interest rates, such as Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Ocean Commercial Joint Stock Bank (Ocean Bank) and others.
By October 18, some more bank members officially joined the race to cut down the interest rates to a maximum of 11 percent per year, including of two state-owned creditors as Bank for Investment and Development of Vietnam Nam (BIDV) and Joint Stock Commercial Bank for Industry and Trade of Vietnam (Vietinbank).
A noteworthy point is that the dong deposit rates of the above mentioned banks were put in a "new order" as they straight away pulled interest rates down to 11 percent per annum applied simultaneously to all other terms from 1 month to 36 months.
Particularly in Vietinbank, the maximum 11 percent was determined from 1 month to 12 months, from 10.5 percent - 10.8 percent per year for the period of over 12 months.
Thus, in the above mentioned banks, irrespective of joint stock, or state owned lenders, apart from the call or very short term as in weeks, there is now no the concept of "interest rate curve". Interest rates cannot be distinguished between high and low short-term maturity.
The above move indicated the competition of interest rates among banks as bank blocks are gradually narrowing interest rates, rather than the state-owned bank block used to offer low interest rates years ago, on the other hand, also showed the adjustment of interest rates in favour of respect for the consensus, while the mobilised capital demand is being still "stretched" in most of the periods without any discrimination.
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