Savings interest rates are sky-high.

TPO - Despite the State Bank of Vietnam's repeated requests for credit institutions to reduce deposit and lending interest rates, the market at the end of May still saw many banks launching savings programs with interest rates of 8-9% per year. This development shows that the capital demand of the banking system remains high.

In the last days of May, the deposit market became more vibrant as a series of commercial banks simultaneously launched programs offering high interest rates on savings.

AtVIB , the bank is offering interest rates of up to 8.35% per year for deposits with terms of 6-11 months. Customers who deposit online receive additional benefits compared to depositing at the counter. From May 25-28, customers depositing at the counter with amounts from 300 million to less than 1 billion VND will enjoy a preferential interest rate of up to 8.10% per year.

Many banks are still maintaining high deposit interest rates to "attract" money back into the banking system.

Sacombank also launched a deposit program with interest rates of up to over 8% per year for customers depositing money for a term of 6-12 months. Besides competitive interest rates, the bank also offers many gifts and incentives to increase its attractiveness to depositors.

Meanwhile, VPBank and SeABank also maintain savings packages with interest rates of 8.5 - 8.9% per year for medium and long-term periods.

Market developments indicate that, despite repeated calls from the regulatory authorities for interest rate reductions, liquidity pressure in the banking system has not truly eased.

On May 14th, the State Bank of Vietnam issued Official Letter No. 3972 requesting regional State Bank branches to inspect the implementation of the Governor's directive on reducing interest rates at commercial bank branches in their respective areas.

Subsequently, on May 21st, the regulatory body issued Official Letter No. 4190, requesting units to hold meetings with commercial banks to ensure strict implementation of the interest rate reduction policy as per Notice No. 117 of the Governor of the State Bank of Vietnam. At the same time, units were instructed to strengthen inspections and strictly handle any violations.

Currently, regional state-owned banks are reviewing banks with deposit and lending interest rates higher than the general average in order to conduct specialized inspections.

However, in reality, the system's liquidity pressure remains, as evidenced by developments in the open market and interbank market.

In the trading session on May 25th, the State Bank of Vietnam offered a total of VND 24,552 billion through the collateralized lending channel with maturities of 14 days, 35 days, and 56 days. The entire amount was absorbed by credit institutions at an interest rate of 4.5% per annum. After deducting the VND 20,000 billion maturing amount, the State Bank of Vietnam injected a net VND 4,552 billion into the market.

The outstanding volume in the collateralized lending channel currently stands at approximately VND 306,130 billion, indicating that the short-term capital needs of banks remain high.

Source: https://tienphong.vn/lai-suat-tiet-kiem-cao-chot-vot-post1846427.tpo