The weekly money market report on May 31 of SSI’s Securities Research and Personal Advisory Department said that in the first four days of the week, although the State Bank of Vietnam (SBV) continuously net withdrew to 30.149 trillion dong, interbank interest rate dropped from 3.28 percent per year to 2.87 percent per year for overnight term, the lowest level in the last eight months. However, overnight interest rate rose back to 3.05 percent on the sixth trading day after SBV net withdrew 10.93 trillion dong.
For the whole week, SBV net withdrew 41.079 trillion dong entirely via bill. Open market operation (OMO) channel did not generate any transactions and maintained a balance of zero. VND/USD ON interest rate difference was at 0.6 percent per year.
Deposit rates of market one with short terms were stable at 4.1 percent to 5.5 percent with terms of less than six months, 5.5 percent to 7.45 percent with terms of six to under 12 months. However, the 12-month and 13-month terms recorded a mixed adjustment in banks, some big banks adjusted downward from 30bps to 40bps (basic point). There were also banks to increase by 20bps to 30bps. The current interest rate was quite different among banks, fluctuating in the region of 6.4 percent to 7.8 percent per year.
In fact, the mobilising interest rate on the market in the last days of May and early June was exactly the opposite adjustment in the long term and therefore widened the large gap between interest rates of banks.
For large banks in the group “Big4″ including Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Agriculture and Rural Development (Agribank) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), the highest interest rates fluctuated from 6.8 percent to seven percent per year for terms of 12 months or more. In stock group, it was popular from 7.4 percent to eight percent per year.
Especially with large deposits, many banks accepted to pay much higher interest. Deposit interest rate of 500 billion dong or more at Vietnam International Commercial Joint Stock Bank (VIB) was 8.6 percent per year, at Saigon Hanoi Commercial Joint Stock Bank (SHB) and Vietnam Public Joint-stock Commercial Bank (PVcomBank) was 8.5 percent per year, at An Binh Commercial Joint Stock Bank (ABBank) 8.3 percent per year and Orient Commercial Joint Stock Bank (OCB) 7.9 percent per year. Banks like Tien Phong Commercial Joint Stock Bank (TPBank), Viet Capital Commercial Joint Stock Bank (Viet Capital Bank), Sai Gon Joint Stock Commercial Bank (SCB), Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), etc. were willing to pay 8.3 percent to 8.55 percent per year for the amount of tens of billion dong to hundreds billion dong or 24-month term deposit.
Thus, the gap between deposit interest rates of banks from the lowest to the highest reached 1.8 percent (6.8 percent and 8.6%).
