According to the weekly monetary market report by SSI Retail Research, in the last week of July, the inter-bank rates, despite already being low, continued to go down. In particular, the overnight rates fell from 0.82% at the start of the week to 0.5% on weekends. The one week and one month interest rates also decreased by 13 basis points in comparison to the previous week. The interest rates are moving towards the bottom, similar to the period from August to October of 2016.
Thanks to the abundant liquidity, the State Bank of Vietnam (SBV) continued netting VND 2.5 trillion out of the system last week. The mobilizing interest rates of commercial banks also dropped back after a week of high mobilization to meet safe targets by the end of the second quarter. Currently, the mobilizing interest rates for short-term deposits have fallen. In particular, the one-month term has decreased from 5% to 4.5% per year.
Operation at VPBank Hanoi.
Specifically, from July 25, Eximbank has reduced the deposit rates from 0.1 to 0.2 percentage points. Accordingly, the one-month term saving interest rate decreased from 4.7% per year to 4.6% per year, two-month term from 4.9%/year to 4.8%/year, three-month term from 5.1% to 5%, and six-month term from 5.8% to 5.6% particularly. VPBank adjusted interest rates on one-month term deposits to 4.8% per year, 2-month term deposits to 4.9% per year and 3-month deposits to 5.1% per year.
Some other banks said they were listening to market movements and could adjust deposit rates. ACB acknowledged that interbank rates are going down. Therefore, ACB focuses on mobilizing capital from banks and residential deposits with setting short-term interest rates of 4.9% per year to ensure a reasonable lending interest rates,
The interest rate cut is welcoming, but has not spread throughout the system and only focused on short-terms rates. Viet Capital Bank still applies 15-month rates of 8.2% per year. Similarly, at VietA Bank, the 13 to 15 month term deposit rates are set at 7.8 - 8.1% per year. As for SCB, the 13-month savings rate is 8.1% per year for deposits of VND1 billion or more. VPBank has decided to increase the interest rate for terms of 24 - 36 months by 0.1 - 0.2% per year, bringing the listed interest rate to 7.5 - 7.6% per year on July 13. Banks such as NCB, Eximbank, OCB announced the highest long-term interest rates of up to 7.9-8% per year.
According to the Circular No. 06/2016 / TT-NHNN, from the beginning of 2017, the coefficient of using short-term loans for medium, long term loans of banks reduced from 60% to 50%. At the same time, the risk coefficient for real estate business increased from 150% to 200%. To meet this requirement, banks must raise medium and long-term capital mobilization while reducing short-term mobilization in order to restructure their loans. Therefore, this is the time for some banks to focus on attracting medium and long term capital by raising long-term interest rates and reducing short-term interest rates to balance capital.
Some previous forecasts suggest that inflation and exchange rates will be two factors that put considerable pressure on interest rates in 2017, but these two factors still remain under control. "However, in recent years, when inflation has fallen, mobilizing rates go down but slowly. Therefore, the SBV pump liquidity to the system so that commercial banks have more capital. However, the support from the SBV in traditional ways such as buying USD, government bonds, lowering management interest rates will mainly affect the short-term interest rates, which cannot completely replace long-term deposits. In addition, the interest rate is also affected by the bad debt ," - said financial expert Canh Van Luc.
According to the State Bank of Vietnam, as of 30/6/2017, the total means of payment increased by 6.82%, while mobilizing capital rose by 7.43% compared to the end of 2016. Credit outstanding of banking industry until the end of June increased by 9.06% in comparison to the end of last year.