VGP - Leaders of 12 big commercial banks in Hà Nội have agreed to lower lending interest rates of loans for production. The central bank will maintain the ceiling mobilization interest rate of 14%, but it will flexibly supply capital to the market to facilitate commercial banks to cut down lending rates. The current lending interest rates of 22-25% have made it difficult for many enterprises to access loans, while many banks have abundant capital. The State Bank of Việt Nam will have another working session with leaders of all commercial banks early next month. At that time, official polices on assisting the lowering of lending interest rates will be publicized. By Ngọc Vân … [Read more...] about Major banks agree to slash lending interest rates
Interest rates
Nine economic branches named as beneficiaries of interest rate incentives
The Governor of the State Bank of Vietnam (SBV) just issued an ordinance instructing the conferment of interest rate incentives to organizations and individuals who take medium and long-term loans from banks to start production and business activities. Accordingly, nine economic sectors will be beneficiaries from the policy, namely agriculture and forestry; aquaculture; mining; processing industry; generation and distribution of electric power, gas and water; construction (except offices for rent and housing for sale); trade, motor vehicle repair, domestic utensils; transportation, logistics and communications; and scientific and technological activities. Earlier, on April 4, the PM issued Decision 443/QĐ-TTg on granting an interest rate incentive of 4% for medium and long-term loans in Vietnamese currency taken by organizations and individuals to invest in production, business and infrastructure development. … [Read more...] about Nine economic branches named as beneficiaries of interest rate incentives
SBV to keep deposit interest rate cap by June
VGP - The State Bank of Vietnam (SBV) said it will maintain its deposit interest rate cap of 14% between now and June this year, said SBV Governor Nguyễn Văn Bình. Mr. Bình made the point on January 11 in Hà Nội while talking with the press. The SBV Governor said that in the first quarter of the year, the central bank will supply money to credit institutions to increase their liquidity and facilitate business production activities. The interest rate cap keeping at 14% will be lifted when the SBV can better manage credit institutions' liquidity, said Mr. Bình. The banking sector saw a credit growth of 13% in 2011, representing almost one-third of the previous years' figures. Tightening credit growth will help reduce machinery and equipment imports and trade deficit. SBV will continue supporting Vietnamese dong and stabilizing foreign currencies to ensure that exchange rate fluctuates at 2-3%./. … [Read more...] about SBV to keep deposit interest rate cap by June
Gold deposit interest rates more and more attractive
Previously, people only made deposits in VND or dollars, while they bought gold just to keep under their pillows as a kind of asset. However, the situation is quite different now: people are rushing to make deposits in gold, while banks are trying to attract gold deposits Statistics show that since 1988, SJC alone has marketed 11mil taels of gold, which means that a huge volume of gold is being kept by people. Commercial banks are trying to attract more gold by continuously increasing deposit interest rates. Some of the banks are preparing for the establishment of gold trading floors in the near future. The volume of gold mobilised by banks has increased sharply in recent times compared to previous years. According to the Vietnam Gold Business Association, the value of deposits in gold has increased from VND5tril to VND18-24,000bil, or VND1-1.5mil taels. The interest rates for gold deposits have been pushed up to 6.5% per annum at the highest level. Viet A is leading banks in … [Read more...] about Gold deposit interest rates more and more attractive
SBV continues interest rate cuts
The Hanoitimes - The Governor of the State Bank of Vietnam (SBV) yesterday issued Decision No. 1289/QÐ-NHNN to cut benchmark interest rates by one percentage point, following the downward trend in inflation and the actual supply and demand in the capital market. Accordingly, the refinancing rate will be lowered to 10%, while the rediscounting rate will be cut to 8%. The overnight rate in the inter-bank electronic payment system and lending gap in the SBV clearing for banks now stands at 11%. The decision will take effect on July 1 and replace Decision No. 1196/QÐ-NHNN dated June 8, 2012. This is the fifth consecutive interest rate cut so far this year, aiming to improve the liquidity of the banking system and help businesses ease their financial difficulties, say experts. From 2006 to 2010, more than 320,000 SMEs were set up across the country, generating 2.7 million jobs. BTA … [Read more...] about SBV continues interest rate cuts