Nhan Dan - Local commercial banks have lowered their interest rate as the State Bank of Vietnam (SBV) caps the deposit interest rate at 13%.
With effect from 13 March, the SBV lowered the deposit interest rate by 1 percentage point to 13% per annum. The move is expected to bring down lending rates and assist local businesses struggling high interest rates and the threat of bankruptcy.
Local commercial banks responded to the announcement by lowering their interest rates. Vietinbank set the short-term and long-term deposit rates at 13% and 9% per year respectively, while the non-term rate was reduced to 3% per year.
Vietcombank also lowered its term deposit rate to 13% per annum and non-term rate to 2.4% per annum.
The term deposit rate at the Bank for Investment and Development of Vietnam was also cut to 13% per annum while the non-term rate is set at 5% per annum.