Vietnam Bank News

Vietnam Bank Directory

Trade LTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL LTCUSD | View LTCUSD News & Updates

Buy Sell LTCUSD, Bitcoin and Cryptocurrencies

Banking News & Financial Services News
Get the latest banking news headlines from Find in-depth Vietnam coverage from banking, investing, financial, stock market, and more abou Vietnam banking system, bank for industry and trade, Vietnam banking sector.

Banks slash interest rates but low-fee capital still inaccessible   2008-07-23 - DTCK

The information about lending interest rate cuts announced by leading banks overjoyed enterprises that are thirsty for capital. However, they now realise that the low-fee capital is not reserved for them.


Vietinbank and Eximbank have announced they will slash VND lending interest rates to 20.5% and 20% per annum at maximum, respectively (the maximum lending interest rate is 21%). Vietcombank late last week also announced it will cut its VND lending interest rate by another 1% per annum to 20%, and US$ rate by 0.5% to 8.5%.


Nguyen Phuoc Thanh, General Director of Vietcombank, said that the bank is trying to share difficulties with clients, helping businesses access suitable-cost capital.


However, Thanh said, the above interest rates will only be applied to loyal clients and enterprises which make essential consumer products. Vietcombank also provides loans at low interest to fund key projects as per request of the government, projects in agriculture and rural development, and projects on farm and forestry produce and seafood export. As for import companies, the low interest rates will only be applied to the importers of essential products (petroleum, agricultural materials, materials for local production, and medicine).


Virtually only businesses can access Vietcombank’s soft loans; it is nearly impossible for individual clients.


Similarly, the Bank for Investment and Development of Vietnam (BIDV) has announced it will slash lending interest rates by 0.2-0.6% per annum on VND loans and 1-2% per annum on US$ loans, but for select clients only.


According to Tran Bac Ha, Chairman of BIDV, the 0.2% cut is for clients who have credit relations with BIDV branches and transaction points, while the 0.6% cut is applied only to investors and businesses which make essential products as defined by the government.


As for US$ loans, the 2% cut is applied to the enterprises which import products in group 1 as stipulated by the Ministry of Industry and Trade: ingot steel, fertiliser, petroleum, plastics, fibre, cotton, chemicals…


Explaining why the interest rate cuts are only applied to specific subjects, Ha from BIDV said that the bank is responding to the government’s call to share difficulties with businesses. However, cutting lending interest rates also means cutting turnover and profit; therefore, the bank cannot apply the low interest rates on a larger scale. 


As such, arranging capital to serve production and business plans remains unfeasible for many businesses. As deposit interest rates now remain at the high levels of 18-18.9% per annum, it is nearly impossible for banks to slash lending interest rates.

Other Banking News

Vietnam's banks cut rates to ease fund shortage   2008-07-23

SeABank to sell stakes to Societe Generale   2008-07-20

Standard Chartered Bank raises stake in Asia Commercial Bank   2008-07-20

A stronger grip on Vietnam’s banking market   2008-07-20

Eximbank says profit more than doubles   2008-07-20

More and more bank securities firms equitising   2008-07-17

Interest rates decreasing, quietly   2008-07-17

BIDV to cut loan rates to boost economy   2008-07-15

One more 100% foreign invested bank licensed   2008-07-15

Central bank asks money changers to re-apply for permit   2008-07-13

Sacombank profit in first six months rises 23 percent   2008-07-13

Sacombank profit in first six months rises 23 percent   2008-07-11

DongA Bank says first-half profit more than double   2008-07-10

Bank urges stricter controls   2008-07-10