Local lenders shorten gold deposit terms

Big local lenders have shortened the gold deposit terms, a next step after the State Bank of Vietnam’ s moves to squeeze the banks’ gold deposit and lending activities in late October last year.

Asian joint stock commercial bank (ACB) on January 18 has announced a new interest rate board for ACB and SJC gold deposits which removed 12-month, 13-month, 24-month and 36-month terms, and maintained deposit interest rates for the remaining terms including one-month, two-month, 3-month, 6-month and 9-month terms.

The highest gold deposit interest rate at ACB is 1.1% p.a. for 3-month term (ACB gold) and the lowest is 0.65% p.a. for 9-month term. (SJC gold).

Earlier on January 6, Export-import joint stock commercial bank (Eximbank) also shortened terms of gold deposits to only one-month, two-month, 3-month, 6-month and 364 terms. The highest gold deposit interest rate at Eximbank is 1% p.a. and the lowest is 0.2% p.a.

Sai gon joint stock commercial bank (Sacombank) on the same day also restructured terms of gold deposits, in which the longest term was only 12 month and deposit interest rates for most terms hovered at 0.01% p.a.

The central bank on late October 28 issued Circular 22/TT-NHNN replacing Decision 432/2000/QD-NHNN to put restriction on gold deposit and lending activities of local credit institution.

By prohibiting local lenders to convert gold into the dong and lend gold for speculation, Circular 22 will help the gold lending interest rates ease, which may help trimming down the gold deposit interest rates in the coming time, said Le Tham Duong, Dean of the Business Faculty under the HCM City Banking University. – Stoxplus.com

Tags: Gold deposit interest rates