So far, only nine banks out of more than 30 Vietnamese banks in the system have received approval to apply Circular 41 regulating the capital adequacy ratio (CAR) under the Basel II standards, including Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam International Commercial Joint Stock Bank (VIB), Orient Commercial Joint Stock Bank (OCB), Asia Commercial Joint Stock Bank (ACB), Military Commercial Joint Stock Bank (MBBank), Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Maritime Commercial Joint Stock Bank (MSB), and Tien Phong Commercial Joint Stock Bank (TPBank).
The compliance with Basel II has a very important meaning for banks. It is like a certification for their safe, efficient and transparent operations under higher risk management principles in line with international standards, helping banks enhance their position, reputation and increase competitiveness in the market, including attracting depositors.
Most of banks which have applied Basel II are listing deposit rates at fairly low levels compared to other banks in the system, showing that their capital mobilisation pressure is not significant.
Deposit rates of TPBank and VIB are slightly higher. The highest rate at TPBank is 8.6 percent per annum, and that is 8.19 percent at VIB. However, these levels are not popular, as TPBank only applies such rate for deposits of more than 100 billion dong on a two-year term with customer’s commitment to not withdraw before maturity. The 8.19 percent per annum rate of VIB is only applicable for 12-month and 13-month with deposits from 500 billion dong and more.
Meanwhile, the highest deposit rate of the remaining seven banks is much lower, such as 6.8 percent per annum at Vietcombank, 7.5 percent per annum at MBBank, 7.1 percent per annum at Techcombank, etc.
The deposit rate list announced by Vietcombank and MBBank is quite general with only one level for a term. Meanwhile, other banks provide a very detailed interest rates, divided by each type of savings. Accordingly, there are different interest rates for the same term.
On the one-month term, the highest rate belongs to ACB with 5.5 percent per annum, applicable for deposits of above 10 billion dong. The lowest rate on this term is 4.5 percent per annum at Vietcombank. The other banks mainly list this rate from five to 5.4 percent per annum.
On six-month term, the highest interest rate is popular at seven to 7.3 percent per annum. The highest level is recorded at VPBank with 7.3 percent per annum, while Vietcombank’s is significantly lower at just 5.5 percent per annum.
On one-year term, the highest rate among the nine banks is 8.19 percent per annum at VIB, while Techcombank’s one-year rate is the lowest and Vietcombank’s is ranging from 6.6 to seven percent per annum.
Regarding the terms of two years and three years, VPBank offers a much higher deposit rate than other banks (reaching 7.4 percent8.3 percent per annum). Meanwhile, the highest rate at ACB, MSB or OCB is only 7.7 percent per annum. The lowest rate is 6.9 percent per annum.
