Average deposit interest rates breaks cap to 15.5%

The average dong deposit interest rate is standing at 15.5% p.a., up 1.5% from the cap and 3% from the end of 2010, said the Ministry of Planning and Investment in its report to National Assembly.

Local interest rates were forced to raise dong deposit interest rates by negotiating with depositors to keep their deposit market shares,the MPI pointed out.

The local newswire VnExpress quoted Vo Hong Phuc as saying that the actual dong deposit interest rates rose to 18-19% p.a. and lending interest rates up to 22-23% p.a. , making it more expensive for enterprises to borrow from the banks.

Phuc added that many of active banks in Vietnam are small and competitive, therefore it would be difficult to cut interest rates in the coming time.

“Together with inflation and trade deficit, interest rates would remain a burning issue for Vietnamese economy at least in 6 months.” – Stoxplus.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Jun 25 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