The ceiling deposit interest rates will be lowered to 9 percent starting on June 11, State Bank of Vietnam (SBV) Governor Nguyen Van Binh said at a National Assembly meeting recently.
This is a 2 percentage point cut, as the rate currently stands at 11 percent a year for deposits of a 1-month term and above, and 3 percent for those of below 1 month.
While not elaborating on what deposit terms will be subject to the new cap, Binh said, however, that the 9 percent rate can be applied for savings with terms from 1 month and above.
This means the maximum interest rate depositors can enjoy from savings of below a 1 month term is likely to be only 1 percent a year, VnExpress reported.
The governor said the cut is being made in an effort to cut lending rates.
With the deposit ceiling rate now dropped to 9 percent, the maximum lending rate for small-and medium-sized enterprises, and businesses operating in the supporting industry, exporting, and agriculture sectors is likely to fall to 12 percent as of June 11.
Some commercial banks have recently demanded an extension of beneficiaries for the preferential lending rates by adding securities and real-estate sectors to the list.
But SBV has yet to produce the final conclusion.
Lending rates for realty and consumer loans at banks currently remain high at 17–19 percent a year.