Bank interest rate trend increases

Recently, some commercial banks have increased their deposit interest rates. Especially the interest rates for medium and long-term deposits, the interest rates are from 7.5% to 8% per year. Many businesses are concerned that the increase in deposit interest rates will increase lending interest rates.

Mr. Nguyen Hoang Minh, Deputy Director of NNNN Vietnam branch in Ho Chi Minh City. Photo: Internet

The reporter had an interview with Mr. Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, about the trend of bank interest rates from now until the end of the year.

Reporter: Sir, recently, some commercial banks increased deposit interest rates. How does this affect the general interest rate level of the market, especially lending interest rates?

Mr. Nguyen Hoang Minh: This increase in bank interest rates is not very high compared to the current level, that is, compared to large banks, it only increases by 0.2-0.3%. This increase is for banks to increase medium and long-term capital sources, to meet the requirements on the quality of credit capital sources, especially capital mobilization, to overcome the imbalance between capital mobilization and lending terms in the operations of commercial banks, and to ensure safety ratios according to the regulations of the State Bank.

According to the assessment of the State Bank of Vietnam, Ho Chi Minh City branch, this increase in deposit interest rates only occurs locally at a few small commercial banks, it does not have a big impact on the general interest rate level and it does not affect lending interest rates.

PV: After the recent shareholders' meeting, some banks have received approval from shareholders to increase their charter capital. How does this affect the banking system?

Mr. Nguyen Hoang Minh: The increase in charter capital of commercial banks this year up to this point is 35-36 thousand billion. The purpose of increasing charter capital of commercial banks is to improve the financial capacity of each commercial bank to meet the increased competitiveness in integration and according to the bank restructuring project approved by the State Bank. That is also the basis for increasing medium and long-term loans and fulfilling the commitments of banks and customers. With the increased charter capital, commercial banks also take a step in the process of restructuring banks according to the regulations of the State Bank.

PV: Sir, what is the trend of bank interest rates from now until the end of the year?

Mr. Nguyen Hoang Minh: With the resources of commercial banks with market signals such as the stock market, real estate and macroeconomic indicators, the Government's attention to businesses, especially the implementation of Resolution 35 of the Government on supporting businesses and customer attraction strategies of banks and credit institutions, we assess that from now until the end of the year, if the Vietnamese Dong is stable, interest rates may decrease from 0.5 to 1% in terms compared to 2016.

PV: Thank you!

According to Kinhtedothi