Commercial banks lower interest rates

After the State Bank of Vietnam decided to lower the ceiling interest rates on loans and deposits in Vietnamese dong from November 19, a slew of commercial banks have started reducing interest rates.

Specifically, VietinBank cut its reward rate by 0.2 percent to 6.8 percent a year for 24-36 month and longer tenor. VPBank cut the rate by 0.4 percent to 7.6 percent a year for 18-36 month term.

In addition, deposits of 12 month term at VPBank see it drop by 0.2 percent to 6.95-7.15 percent a year. The rate reduces 0.3 percent for nine month tenor.

Previously VietCapital Bank reduced its reward rate from 7.8 to 7.6 percent a year for seven month tenor. Tenors above 24 months reduced 0.1 percent a year from the beginning of November. Similarly Eximbank cut the rate by 0.2 percent to 8.1 percent a year for 15 month term and 0.1 percent to 7.7 percenta year for 12 month tenor. SCB lowered its saving rate from 7.75 to 7.55 percent a year for 24 month tenor.

In loan rates, Vietcombank slashed the rate by 0.5 percent for existing loans in Vietnamese dong for businesses in the last two months of the year. MSB announced a 2 percent cut in short term loan rate to businesses and business households. Loans for production, breeding and agriculture purposes see it drop by 3.6 percent.


By Hanh Nhung - Translated by Ngoc Thanh

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