The State Bank of Vietnam (SBV) is collecting feedback on a draft circular that will, among other things, allow non-residents legally present in Vietnam to make term deposits in both VND and foreign currencies.
Some commercial banks have entered a new interest rate hike race to lure medium- and long-term deposits, pushing the rate to a record high of more than 9% per year.
Despite good liquidity in the banking system, the peculiarities in Vietnam’s monetary policy management has prevented the decline of interest rates on deposits, a central economic report said.
Institutions and individuals deposited some VND2.57 quadrillion (US$113.2 billion) at eight listed commercial banks by the end of 2016.
A surge of US$5.9 billion in overseas foreign currency deposits by local commercial banks in the third quarter of last year was normal, said director of the State Bank of Vietnam’s Forecast and Statistics Department, To Huy Vu.
Vietnam’s monetary policies resemble China’s in many respects. Two prime examples are the control of capital flows and market interest rates, including the application of ceiling deposit interest rates.
The maximum interest rate paid to individuals depositing US dollars in local banks will be zero percent per year from December 18, the central bank announced.
The State Bank of Vietnam (SBV) will reduce the reserve requirement ratio for banks that take part in the restructuring of the banking system.
The US dollar interest rate cut last month will not cause economic losses for organisations or individuals, said the State Bank of Vietnam (SBV) on October 12, adding that it is more beneficial to shift to VND as the difference between the interest rates on USD and VND deposits is now above 5%.
The interest rate ceiling on US dollar deposits was reduced as of September 28, in a move to avoid the hoarding of the dollar in the domestic economy.
Vietnam's central bank said late on September 27 it was abolishing the interest rate ceiling on dollar deposits offered by banks to organisations and companies, which previously stood at 0.25%, in an attempt to avoid dollar hoarding.
Vietnam recorded a credit growth rate of 6.09% by June 18 compared to the end of 2014 and 18.98% from the same period last year, according to Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong.
Individuals and organisations that import waste materials for production purposes must pay security deposits up to 20% of the imported goods' value from the middle of next month.
There is no need to worry about credit growth in foreign currencies in the first half of this year as the ratio of dollar loans versus mobilisation is within its safe threshold.
Domestic banking operations are stable, the State Bank of Vietnam (SBV) affirmed in a report on February 12.
The State Bank of Vietnam (SBV) said it will promptly solve policy and mechanism-related problems to facilitate credit expansion and ensure the sector’s health safety in the coming time.
(VOV) - The Working Group on Vietnam – China cooperation in less sensitive issues at sea agreed on two joint cooperation projects during their fourth round of negotiations in Hanoi from September 24-26.
(VOV) - There is growing concern about the decision of financial institutions to lower interest rates as banks are struggling to ensure the adequate supply of capital.
The State Bank of Vietnam (SBV) decided a cut in deposit rate caps by 1 percent from March 26.
After a decline in the first month of the year, the total outstanding loans of commercial banks in February surged 0.71 percent against December last year, according to the State Bank of Vietnam.