Commercial banks continue increasing reward rates

SGGP
Commercial banks have increased reward rate this month after two rounds of the rate’s increase in September and October.

Lot of banks have increased reward rate to attract capital

Lot of banks have increased reward rate to attract capital

Specifically, the rate on some terms have been up by 0.6 percent to reach 8.2 percent a year.
Banks said that they want to increase capital mobilization to meet customers’ capital demand which has been increasing this yearend season.
Aside from that, the rate hike aims to meet the regulation stipulating that the ratio of using short term funds for medium and long term loans will reduce from 45 percent to 40 percent from early 2019 according to State Bank of Vietnam’s Circular 16,  they  added.
Experts in the banking industry said the move was to cope with bad debt. Statistics from securities firms of 16 banks who have been listed on the stock market show that  as of September, deep debt ratio from most banks except Sacombank and Eximbank has strongly increased 20-40 percent compared to the end of 2017.

By HANH NHUNG – Translated by Hai Mien

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