Vietnamese banks have been raising mobilization interest rates since October, causing concern for enterprises that the lending rates could increase in tandem, Thanh Nien newspaper reported.
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SHB also increased the VND mobilization rate by 0.1 percentage point per year for short-term deposit from 3 to 5 months.
Similarly, Vietnam Prosperity Commercial Bank (VPBank) also increased its mobilization rate for certain deposit terms by 0.1 percentage points per year. Notably, a mobilization rate of over 7% per year is applied for deposit of over 6-month term.
Orient Commercial Bank (OCB)’s mobilization rate increased by 01. – 0.2 percentage points per year, a deposit of 36-month term would have an interest rate of 7.7% per year.
Others major banks including Bank for Investment and Development of Vietnam (BIDV), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietcombank) and Joint Stock Commercial Bank for Foreign Trade of Vietnam (VietinBank) increased their respective mobilization rate by 0.1 – 0.3 percentage points per year.
Notably, the inter-bank rate has also increased since the beginning of November, in which the overnight rate recorded on November 16 stood at 4.74% per year, 5.09% for one-month term, 5.58% for three-month term, and 5.8% for 6-month term.
Growing mobilization rates would put pressure on higher lending rates. Nguyen Hinh Phu Lam, director of Hai Binh Gia Lai company, said an increase in mobilization rate in combination with growing transportation and financial costs could cause an increase of 5 – 7% in product prices.
Bui Quang Tin, lecturer at Banking University of Ho Chi Minh City, expected the lending rates would increase by 0.5% - 1 percentage point per year in the remaining months of 2018, depending on each bank.
