Joint stock banks narrow rate gaps

HCM City (VNA) - Several joint stock banks have slashed VND deposit interest
rate, narrowing the gap with State-owned banks, the central bank said in a
report.

Asia Commercial Bank cut deposit rates by 1.72 percentage points for
one-week deposits and by 1.5 percentage points for two-week deposits.

Saigon Commercial Bank and Oriental Commercial Bank reduced interest rates
by 0.4 percentage points for some deposits.

According to the State Bank of Vietnam report, the annual interest
rates for VND deposits have fallen by 0.1-1.75 percentage points from their
peak of 19 percent last month.

The rates stand at 17.17.3 percent per year at State-owned banks, and
18.13-18.25 percent at joint stock banks.

Some banks have also cut US dollar interest rates by 0.05-1.0 percentage
point per year.

ACB reduced it by 0.2 percentage points for three-month deposits.

Vietnam Export Import Bank, or Eximbank, reduced it by 0.15-0.45 percentage
points per year to 6.2-6.3 percent for one- to five-month terms.
The interest rate gap - between deposit and loan rates - has also been
shrinking after several banks cut rates respectively by 0.5-1 percentage
points per year and 0.5-2.0 percentage points per year for VND and USD
loans.

The Bank for Investment and Development of Vietnam cut its lending rates in
VND and USD-VND by 0.2-0.6 percentage points and 2 percentage points per
year.

Other such as the Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam
Bank for Industry and Trade (Vietinbank), Vietnam Bank for Agriculture and
Rural Development (Agribank) and Eximbank have also reduced their lending
rates.

The dollar-dong exchange rate saw slight fluctuation last week and it
currently stands at 16,494 VND.

The open market rate is currently at 16,750-16,770 VND per dollar.

The central bank said the currency market is now stable.-