Lending interest rates are under increasing pressure

VCN - Banks have continued to increase the highest deposit interest rate up to 1%/year. Experts believe that deposit interest rates will increase even faster in the last months of the year.
Deposit rates also increased in the last months of the year. Photo: Internet
Deposit rates also increased in the last months of the year. Photo: Internet

Pressure to increase interest rates

According to the survey of interest rates of banks in the early days of September, many banks have adjusted their savings interest rates with a common increase of 0.3-0.6% a year, mainly for 6 and 9-month terms.

In which, Sacombank and MB have had a strong increase to 1%/year for 9-month savings deposits, helping this term interest rate at Sacombank reach 5.7%/year, while MB is 5.6%/year.

In addition, for terms of 24 months, MB increased by 0.95%/year compared to the beginning of August, to 6.7%/year.

MB's 6- and 12-month term savings interest rates also increased by 0.43%/year and 0.53%/year, respectively, to 5.3%/year and 6.1%/year.

Similarly, Sacombank increased interest rates by 0.2%/year with terms of 6, 12 and 24 months to 5.4%/year, 6%/year and 6.4%/year, respectively.

SCB continues to be one of the banks with the highest deposit interest rates in the market, with deposit interest rates at 12, 24 and 36-month terms all listed at 7.3%/year.

Kienlongbank also recorded interest rates up to 7.3%/year for a term of 36 months. CBBank continues to be the bank that pays the highest 12-month deposit interest with 7.45% at the counter and 7.5% for the online channel.

The average market interest rate for a 12-month term is 6.3% at the counter and 6.49% when depositing money online. In addition, many banks also attract depositors with a series of promotions for gifts and prizes.

According to experts, the deposit interest rate is likely to continue to increase due to inflationary pressure as well as to add more capital to meet the capital adequacy ratio (CAR), avoid the imbalance of short-term capital mobilization ratio in medium and long term loans. At the same time, banks raised deposit rates to stimulate people to deposit money in banks when the capital mobilization rate from the beginning of the year until now is much lower than the credit growth rate.

A representative of a commercial bank said that the increase in deposit interest rates was also aimed at preparing capital for loans at the end of the year, especially up to now, banks have been allocated additional credit growth limit (room) by the State Bank (SBV).

Leave room to support businesses

According to the analysis of SSI Securities Company, due to the current high credit-deposit growth gap and deposits from the State Treasury may no longer be abundant, if the public investment begins to be promoted strongly. Therefore, the pressure to increase deposit interest rates in the second half of 2022 is present. Therefore, SSI forecasts that deposit rates may increase by 50-70 basis points after loosening the credit growth limit. For the whole year of 2022, deposit interest rates may increase by 1-1.5%.

With this development, businesses are concerned that lending interest rates are under increasing pressure. Banking-finance expert Dr. Can Van Luc said that lending interest rates are under increasing pressure when interest rates in the international market increase and banks' inputs also increase. However, the increase in loan interest is not expected to be too strong to serve economic recovery.

As for banks, according to Mr. Trinh Bang Vu, Head of Shinhan Bank's Personal Loan Division, the savings interest rates that have been continuously adjusted by banks in recent times have led to an increase in lending rates. Similarly, the representative of OCB forecast that lending interest rates might increase slightly by 0.1-0.2%/year due to stronger pressure from input interest rates. Experts at KB Securities Company (KBSV) forecast that deposit interest rates are likely to increase by 0.5-1%/year, pushing lending rates up by about 0.4-0.7%/year.

Speaking at the Government press conference a few days ago, SBV Deputy Governor Dao Minh Tu said that interest rates have increased slightly in both deposits and loans. Deposit interest rates have increased by about 0.25%, lending rates are 0.24%. Currently, the average lending interest rate is 7.9-9.3%/year, including new and old loans. However, the State Bank will continue to direct banks to reserve room to support businesses.

By Hương Diu/ Bui Diep

Related News

The "compass" for policy credit

The "compass" for policy credit

VCN - Directive No. 40-CT/TW issued on November 22, 2014, by the Central Committee of the 11th Party Congress, focusing on enhancing the Party's leadership over social policy credit, is recognized as a sound policy by both the Party and the State, becoming a "compass" for policy credit activities.
Interest rate fluctuations in the world affect Vietnam

Interest rate fluctuations in the world affect Vietnam's exports

VCN - According to experts, the recent interest rate cuts by the European Central Bank (ECB) and the Bank of Canada (BoC) are important moves that signal a broader trend of monetary easing among major central banks. This is likely to affect Vietnam's exports.
The outlook for maturing real estate corporate bonds might be more positive in 2024 compared to 2023

The outlook for maturing real estate corporate bonds might be more positive in 2024 compared to 2023

VCN - Customs News interviewed financial expert Nguyen Tri Hieu (Photo).
Digitizing the process, banks actively lend online

Digitizing the process, banks actively lend online

VCN - Many banks promote online lending to save time and costs for both parties and creating conditions to promote credit growth.

Latest News

Continue to warn about forms of fraud against taxpayers

Continue to warn about forms of fraud against taxpayers

VCN - In response to the increasing prevalence of sophisticated scams targeting taxpayers, the General Department of Taxation (GDT) has issued directives to tax authorities nationwide to strengthen individual income tax management and provide warnings and preventive measures to help taxpayers remain vigilant and protect themselves from fraudulent activities.
Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

VCN - Banks and insurance businesses have different understandings of the regulations in the Law on Credit Institutions 2024.
Corporate bond issuance soars in comparison to 2023

Corporate bond issuance soars in comparison to 2023

VCN - According to the Ministry of Finance, from the beginning of the year to June 21, 2024, 41 enterprises have issued private corporate bonds with a total value of VND 110.2 trillion.
Tax debt recovery is estimated to achieve VND 45,468 billion

Tax debt recovery is estimated to achieve VND 45,468 billion

VCN - In the first half of 2024, tax authority at all level has issued 16,859 notifications on temporary exit suspension and recovered VND918.7 billion of tax debt from 1,482 taxpayers.

More News

Public accounting standards publication contributes to spreading investment attraction

Public accounting standards publication contributes to spreading investment attraction

VCN - According to a World Bank (WB) expert, the publication of public accounting standards not only helps strengthen the sustainability of the financial system but also creates a ripple effect in attracting private sector and foreign investment.
Another six months for debt restructuring but need to manage bad debt risks

Another six months for debt restructuring but need to manage bad debt risks

VCN - The decision to continue extending the debt restructuring period, keeping the debt group unchanged for another six months, is expected to continue to contribute to solving difficulties for businesses, reduce debt repayment pressure, and add resources for production and business recovery.
Promote  information transparency to increase large-scale investors in  stock market

Promote information transparency to increase large-scale investors in stock market

VCN - Deputy Minister of Finance Nguyen Duc Chi talked with Customs News about the goal of upgrading Vietnam's stock market and solutions to achieve this goal by 2025.
Ministry to release final draft circular on stock market upgrades

Ministry to release final draft circular on stock market upgrades

The Ministry of Finance is set to announce the final draft of a circular related to the upgrade of Vietnam's stock market and operate the Korea Exchange (KRX) system this week.
Ensure price stability associated with macroeconomic stability

Ensure price stability associated with macroeconomic stability

VCN – To stabilize market prices from now until the end of the year, especially implementing the salary reform, the Ministry of Finance will implement solutions and respond to ensure price stability associated with macroeconomic stability.
Minister of Finance: continue to advise on promulgating fiscal policies to help economy recover and develop

Minister of Finance: continue to advise on promulgating fiscal policies to help economy recover and develop

VCN - According to Minister of Finance Ho Duc Phoc, although implementing policies to reduce and extend taxes and fees will impact budget revenue, the Ministry has reviewed, evaluated and continued to promulgate a number of fiscal policies to support people and businesses.
Vietnam rises 11 places in budget transparency ranking

Vietnam rises 11 places in budget transparency ranking

VCN - The results of the Open Budget Survey 2023 (OBS 2023) have just been announced by the International Budget Cooperation (IBP), Vietnam's budget transparency ranking continues to be raised to 57 out of 125 countries, climbing 11 places compared to the 2021 assessment period and rising 20 places compared to 2019.
Total budget revenue in first half of year reaches 60% of estimate

Total budget revenue in first half of year reaches 60% of estimate

VCN - According to the Ministry of Finance, total state budget revenue in the first six months of the year was quite good and grew over the same period last year. This results in effective implementation of tax laws and state budget collection tasks, revenue management, and anti-revenue loss of the Ministry of Finance. Along with that, the Ministry of Finance actively deployed policies to help remove difficulties for businesses and people.
Adding goods item subjected to special consumption tax

Adding goods item subjected to special consumption tax

VCN - According to Ministry of Finance – drafting agency, one of the purposes of amending Law on Special Consumption Tax this time is to perfect regulations on special consumption tax policy to expand the collection base and ensure transparency, ease of understanding, and ease of implementation to contribute to improving the capacity and efficiency of tax management activities. To achieve this goal, the draft Special Consumption Tax Law has many amendments on taxable objects.
Read More

Your care

Latest Most read
Continue to warn about forms of fraud against taxpayers

Continue to warn about forms of fraud against taxpayers

General Department of Taxation has issued directives to strengthen individual income tax management and provide warnings and preventive measures to protect themselves from fraudulent activities
Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

Under amended law, it needs clarification on cooperation between commercial banks and insurance companies

VCN - Banks and insurance businesses have different understandings of the regulations in the Law on Credit Institutions 2024.
Corporate bond issuance soars in comparison to 2023

Corporate bond issuance soars in comparison to 2023

According to the Ministry of Finance, from the beginning of the year to June 21, 2024, 41 enterprises have issued private corporate bonds with a total value of VND 110.2 trillion.
Tax debt recovery is estimated to achieve VND 45,468 billion

Tax debt recovery is estimated to achieve VND 45,468 billion

In the first half of 2024, tax authority at all level has issued 16,859 notifications on temporary exit suspension and recovered VND918.7 billion of tax debt from 1,482 taxpayers.
Public accounting standards publication contributes to spreading investment attraction

Public accounting standards publication contributes to spreading investment attraction

VCN - According to a World Bank (WB) expert, the publication of public accounting standards not only helps strengthen the sustainability of the financial system but also creates a ripple effect in attracting private sector and foreign investment.
Mobile Version