Three more banks launch daily capital mobilization programs

Following WesternBank, three other banks namely Vietnam Asia Commercial Joint Stock Bank (VietABank), Nam Viet Commercial JS Bank (Navibank) and Vietnam Export Import Commercial Joint Stock Bank (Eximbank-EIB) have recently launched daily capital mobilization programs to woo depositors.
The local newspaper Tuoi Tre (Youth) on September 24 reported that the daily saving interest rate at VietABank ranged between 13% and 13.8% per year while at Navibank, with deposit worth 100 million dong for 1-day term, the interest rate was 14% per year. At Eximbank, the overnight saving interest rate was at 7% per year and it was 48% per year for 48-hour term.

Earlier, Western Commercial Joint Stock Bank (WesternBank) announced to apply the interest rate of up to 14% per year for savings with terms of from 1-day to 6-days.

Orient Commercial Joint Stock Bank (OCB) also introduced promotion programs with attractive gifts depending on terms and amount of savings.

Chairman of a bank’s director board said that after the State Bank of Vietnam (SBV) required strict implementation of the deposit interest rate cap at 14% per year, small banks no longer have competitive advantages. Many depositors withdrew money in smaller banks to deposit in bigger banks, leading a sharp decline in capital sources of small banks. Therefore, these banks have to offer short term capital mobilization programs, at the same time launch more promotions to woo customers.

With 1-day term saving, the depositor will enjoy the actual deposit interest rate of up to over 15% per year, the chairman said.

On September 23, the interbank interest rate for 1-month term was still at 15.5% per annum (p.a.) and it was 14.2% p.a. for 1-week term and 14.5% p.a. for 2-week term.

Source: Vietbiz24

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial