Vietnam’s central bank has released information on the evolution of deposit and lending rates offered by credit institutions to their customers for July 2024.
Vietnamese dong (VND) deposits held by domestic commercial banks averaged 0.2%/year for non-term and less-than-1-month term deposits; 2.4%-3.4%/year for 1-month to less-than-6-month term deposits; 4.4%-4.8%/year for 6-month to 12-month term deposits; 5.5%-6.2%/year for over-12-month to 24-month term deposits; and 6.9%-7.4%/year for over-24-month term deposits.
Meanwhile, USD deposit rates at credit institutions remained at 0%/year for both individual and institutional deposits.
Illustration: KT
In terms of lending rates, the average lending rate for new and outstanding loans at domestic commercial banks ranged from 6.9% to 9.3%/year.
The average short-term lending rate in VND for priority sectors was approximately 3.6%/year, lower than the maximum short-term lending rate prescribed by the State Bank of Vietnam (4%/year).
The average USD lending rate for new and outstanding loans at domestic commercial banks stood at 4.1%-5.0%/year for short-term loans and 6.3%-7.4%/year for medium and long-term loans.
As per the latest announcement by the State Bank of Vietnam on August 20, 2024, regarding interbank interest rates, the overnight rate was 4.5%/year. The 1-week, 2-week, and 1-month interbank rates were 4.57%, 4.52%, and 4.79%/year, respectively.
Banking: Huge Profits Yet Worried
Several banks have announced their 2023 financial results, showing outstanding growth. However, they are also facing increased pressure in setting aside provisions for credit risk.
Which bank offers the lowest mortgage rates for purchasing a house?
The current lowest market interest rate for home purchase loans is 5% per year, with an additional margin of only 2% per year after the expiration of the promotional period. Many have commented that this is a relatively low rate compared to the general market.
Prime Minister demands effective solutions for managing the gold market in Q1
Prime Minister Pham Minh Chinh has recently issued Directive No. 06, urging the implementation of key tasks after the Lunar New Year holiday in 2024.
The Reason for Low-Cost Margin Loans
Interest rates on margin loans at brokerage firms are trending lower, thanks to the current low-interest rate environment. In fact, some firms are even offering 0% interest rates for a certain period of time.
