14:18 | 21/07/2019 Finance - Banking
About half of commercial banks, mainly small and medium ones, are listing deposit interest rates at a relatively high level of over 8% per year in a bid to raise capital to meet Basel II standards.
|Commercial banks mobilise long-term capital with higher rates to attract idle cash - Illustrative image|
Commercial banks are facing pressure to meet requirements on reducing the ratio of short-term capital for medium- and long-term loans to 40% and on increasing Tier 2 capital to satisfy Basel II standards by next year.
SHB has announced they will apply a deposit rate up of to 8.2% per year for 9-month deposits instead of 6.9-7% per year. With this adjustment, SHB is currently one of the banks offering the highest deposit rates during this term.
SHB General Director Nguyen Van Le said that banks are boosting capital mobilisation, particularly long-term deposits to seize business opportunities in the remaining months of the year.
The highest deposit rate currently stands at 8.7% per year for online savings of 36-month term at Nam A Bank.
TPBank and VIB also offer a high rate of 8.6% per year for large deposits from VND100 billion (US$4.3 million)while VietCaptialBank offers the same rate for all types of deposits from 24 months. Current deposit rates at VPBankhave been increased by 0.4% per year compared to that in June.
Meanwhile, Vietnam’s largest banks including Vietcombank, VietinBank, BIDV and Agribank remainthe lowest deposit rates in the market at roughly 6.8-7% per year.
According to Dr.Nguyen Duc Do from the Academy of Finance, the current deposit interest rate is relatively stable but is on the rise because the State Bank reduces the ratio of using short-term capital for medium- and long-term loans. Therefore, commercial banks must mobilise long-term capital with higher rates to attract idle cash.