Right after the State Bank of Vietnam (SBV)'s decision to reduce the basic rates to 11%, number of big banks continued lowering the lending rates. In one day, the lending rate established new bottom twice. The lowest level now is at 12% per year, equalling to the common interest rate before the inflation period.
The highest deposit rate at several commercial joint stock banks has been adjusted down to below 13% per year. With increased liquidity, banks have reduced the saving interest rates drastically. Banks mainly aim at short-term deposits. In the market, highest deposit rates mainly focus on 2-3 month terms, the deposit rates reduce gradually for deposits with terms from three months and longer.
Ho Chi Minh City shares edged up Friday as they tracked a strong rally overnight on Wall Street triggered by bargain hunting. The VN-Index, Vietnam’s main stock index, opened strongly thanks to heavy buying, and ended the first session 3.32 percent higher at 357.75 points. But the second session saw the index give up some of its gains before it finally closed 5.83 points, or 1.68 percent, up at 352.07 points. Saigon Thuong Tin Commercial Joint Stock-Bank, or Sacombank, the exchange’s only listed lender, remained the most active by volume, with nearly 2.5 million shares traded.
The deposit rate at commercial banks fell sharply and the capital mobilisation in the banking sector is showing signals of slowdown. At other big banks such as Asia Commercial Joint Stock Bank (ACB) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), the deposit rate was also lowered. ACB is charging the deposit rate of 14% per year for three-month term and remaining terms at less than 14% per year such as for six months at 12.55% and nine months at 9-12.5% per year.