On September 22, the US Federal Reserve (Fed) officially finalized the plan to increase interest rates by 0.75% for the third consecutive time. The US move immediately affected the monetary policies of banks around the world.
Responding, domestically, on September 23, 2022, the State Bank of Vietnam (SBV) increased a series of operating interest rates and ceiling deposit interest rates under 6 months by 1%. This is the first time the currency authority has raised its operating interest rate since May 2011.
Currently, the operational interest rate level of the SBV has returned to the same level as the time of the new pandemic in March 2020 and is 0.5 percentage points lower than before COVID-19 (except for the ceiling for deposit interest rates under 6 months).
The SBV's series of increases in operating interest rates sends a message that capital for commercial banks is no longer cheap as well as limit the liquidity of copper in the market.
Immediately after the SBV applied new operating interest rates, a series of commercial banks have issued new short-term deposit interest rates according to this change. These include ACB, SHB, KienlongBank, Ban Viet and BacABank announcing an increase in deposit interest rates applicable from September 23. VPBank has announced an adjustment to deposit interest rates applicable from September 24.
Not out of the general trend, securities companies also simultaneously adjusted interest rates for margin trading (margin). Specifically, Dragon Capital Securities (VDSC) announced an increase in the interest rate of regular margin products from 0.034%/day (12.41%/year) to 0.037%/day (13.5%/year) from October 3.
Similarly, Ho Chi Minh City Securities (HSC) also has changes related to lending interest rates on stock trading accounts. In which, the new interest rate will be 14.5%/year and will be applied from October 5.
Not only increasing margin lending interest rates, some deposit products of securities companies also show signs of increasing. Most recently, Bao Viet Securities (BVSC) changed the interest rate table applied to iDeposit products, increasing by 30% compared to previous terms for both iDeposit Var & iDeposit fix.
