Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade LTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL LTCUSD | View LTCUSD News & Updates

Buy Sell LTCUSD, Bitcoin and Cryptocurrencies

Banks cut deposit rates to reduce costs   2008-11-25 - Reuters

Banks have cut dong deposit rates by up to 3.5 percentage points in the past week as they seek to cut borrowing costs and beef up lending, bankers said Monday.



The Hanoi-based Military Bank said it had slashed dong deposits rates by 3.5 percentage points to 12 percent per year on its one-year dong deposits Monday, from 15.5 percent per year previously.

Ho Chi Minh City-based Sacombank also said it had cut the yield on its one-year dong deposit to 11.04 percent from last Friday.

"The lower interest on dong deposits would enable banks to reduce lending rates further in line with the central bank's policy to help prevent an economic slowdown," a banker at Military Bank said.

She said her bank had also lowered dong loan rates to about 14-16 percent per year and resumed consumer finance loans after several months of suspension as part of the central bank's credit-tightening policy to battle double-digit inflation.

State-run banks, the market's major lenders, have also cut dong loan rates in the past week with top lender Agribank now offered 12-14 percent per year to its prime clients.

Last Friday the central bank slashed three benchmark dong interest rates, its third rate cut in four weeks, and lowered bank reserve requirements.

The country has battled double-digit inflation and a widening trade deficit for much of the year by tightening monetary policy, but officials appear increasingly concerned the global credit crisis could drag down growth.

Vietnam should keep lowering interest rates next year and manage the exchange rate flexibly in the face of a worsening global economy, Prime Minister Nguyen Tan Dung said earlier this month.

Other news

Nation seeks to double sea-trade by 2010   2008-11-25

French strategic partner assists SeABank   2008-11-25

Local banking service provider scoops int’l award   2008-11-25

HCMC shares down again as investor confidence dries up   2008-11-25

PV Trans gets $175 million loan to buy tankers   2008-11-25

Gold prices jump   2008-11-25

How to deal with mini banks?   2008-11-25

Vietnam’s 500 biggest businesses in 2008 announced   2008-11-25

BUSINESS IN BRIEF 25/11   2008-11-25

HASTC promises preferences for early-birds   2008-11-25

FDI exceeds US $60 billion   2008-11-25

Gov’t efforts to prime pump not enough   2008-11-24

Villa prices plunge by VND2b as top-end investors try to sell   2008-11-24

BUSINESS IN BRIEF 24/11   2008-11-24