Banks may suffer 3-month loss if lending at interest rate of 17-19pct/yr

Banks may suffer 3-month loss if lending interest rate is at 17-19pct/yr while remaining the current deposit rate, Nguyen Hung, general director of Vietnam Prosperity Commercial Joint Stock Bank (VPBank) said.

However, he said that if the actual deposit interest rate decreases to below 14 percent per year, bank will not suffer losses.

Hung said that in the near future, his bank will reduce the interest rate for all borrowers because the interest rate will go down in the near future.

However, Hung also added that there will be no loosening monetary policy for real estate sector. The lending will still follow the negotiation mechanism.

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Sep 8 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry