SBV caps deposit interest rate at 12% (27/02)
06/08/2010 - 29 Lượt xem
The Governor has requested banks follow the principle of ensuring real profit for depositors in mobilizing capital (interest rates must be higher than the inflation rate); however, deposit interest rates must not be higher than 12% per annum, or 1% per month.
The Governor also said that the State Bank has been taking necessary steps to support banks’ payment capability, especially small joint stock institutions.
As such, banks that offer deposit interest rates higher than the allowed level will have to lower rates.
In late February 26, Techcombank announced its new interest rate, a record high 14.2% per annum.
The interest race between commercial banks has them raising rates daily. Experts are warning about the detrimental effects a race like this can have on the economy. East Asia Commercial Bank (EAB) has adjusted their interest rates three times within a short period, and Techcombank raised them twice.
By 7 pm on February 26, interest rates offered by banks in HCM City were as follows:
|
Banks/Deposit terms |
One month term |
Three month term |
Nine month term |
12 month term |
|
Techcombank |
14.2% per annum (in the south) 13.8% (in the north) |
14.2% per annum (south) 13.8% (north) |
14.2% per annum (south) 13.8% (north) |
14.2%/năm (south) 13.8% (north) |
|
EAB |
11.40% per annum |
12.36% |
12.72% |
13.56% |
|
Southern Bank |
9.60% |
10.56% | ||
|
An Binh |
13.65% |
13.8% |
||
|
Sacombank |
9.94% | |||
|
Viet A |
13.92% |
The continuing increases (some banks adjust their interest rates several times a day) have prompted depositors to withdraw money from some banks to make deposit in others offering higher interest rates.
Vu Duy Hung, who lives in district 1 in HCM City, after realizing that Techcombank was offering 14.2%, said he will withdraw deposits from his current institution to deposit at Techcombank.
Meanwhile, Ho Thi My Hanh, who lives in district 3, said she is wondering if she should switch to Techcombank, because she fears that other banks may offer interest rates more attractive than Techcombank in the next few days.
A representative from EAB said that the VND capital shortage will continue and it may last until mid March 2008.
Source: Tuoi tre, VietNamNet.
