Vietnam banks raise interest rates on Euro deposits

Interest rates offered on euro-denominated deposits were recently pushed up, rising to as high as 4% per annum.

Interest rates offered on euro-denominated deposits were recently pushed up, rising to as high as 4% per annum, the local online newspaper VnExpress.net reported, adding that commonly, non-US dollar interest rates at commercial banks stayed low at 0.1-0.5% p.a.

Specifically, Saigon Commercial Bank (SCB) offered 4% p.a. interest rates in EUR deposits for 12 to 24- month terms, the highest level in the whole banking sector.

TinNghiaBank quoted interest rates for euro deposits at 3.1-3.2% p.a. for 12 to 24-month terms.

Vietnam Export Import Commercial Joint Stock Bank (Eximbank) from Nov 15 also lifted the euro deposit interest rates to 3% p.a. from 1-2% p.a. for 12-month term.

In addition, interest rates for deposits in other foreign currencies, such as Australian dollars (AUD) at local banks surged after HSBC Vietnam applied the AUD interest rate of 4% p.a. one month ago.
The AUD interest rates ranged from 3.5% to 3.8% p.a. for 1-12 month terms at SCB; 3.8% p.a. for 6-24 month terms at TinNghiaBank; 3.5%-3.7% p.a. for short terms (1-3 months) and 3.8 % p.a. for 6, 9 and 12 months deposits at Eximbank.

After the central bank imposed rate caps on the dong and dollar deposits, local lenders sought for mobilizing foreign currencies by offering higher interest rates, commented Le Tham Duong, Head of Business Administration Department, Banking University of Ho Chi Minh City.

Interest rates on gold deposits were also reported to rise significantly, surging to 3.2% p.a. at Orient Commercial JS Bank (OCB). To date, there are currently three other banks who offer above 3% interest rates on gold deposits.

Source Sophie/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Nov 18 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