Customers do transactions at a bank. (Photo: SGGP)

Low interest rate capital for priority sectors only

The current mobilizing interest rates and certificates of deposit of most commercial banks have touched 9 percent per annum, an increase of 0.5 percent compared to those at the end of last year.
M2M businesses must deposit 5 percent of chartered capital

M2M businesses must deposit 5 percent of chartered capital

Multi-level marketing (MLM) businesses are responsible for making a deposit equivalent to 5 percent of their chartered capital and not lower than VND10 billion (US$430,000) at commercial banks or foreign bank branches in Vietnam from January 1, 2019 according to Circular 29 issued by the State Bank of Vietnam.

Most commercial banks have raised interest rates on property loans because of soaring prices in the market. Photo nld.com.vn

Banks tighten lending rules

Many commercial banks in the country have increased loan interest rates by 1-2 per cent to investors in real estate as property prices continue to rise.


VPBank reduces 1% interest rate for businesses in five priority fields (Photo: SGGP)

Commercial banks lower loan rates after SBV’s reduction

After the State Bank of Vietnam (SBV) decided to cut short term loan interest rates by 0.5 percent and management interest rates by 0.25 percent from July 10, commercial banks have started lowering their rates.
Net Interest Margin of commercial banks in 2016 (percent). (Source: BIDV Securities Company)

Trimmed interest rates might affect NIMs: experts

Commercial banks which have cut interest rates for short-term lending following the State Bank of Vietnam’s cue might suffer a further decline in the net interest margin (NIM), experts said.
A Vietcombank branch in Phu Quoc Island. The bank is one of the highest lending revenue earners in the first quarter. (Photo: VNA/VNS)

Bank profits still mainly depend on lending

Profits of commercial banks, including large-sized entities, continue to depend mainly on lending, making it difficult to achieve sustained growth.