Banks last week: SBV allocated credit room, only 4 banks listed deposit interest rate of 9.5%

After being allocated a new credit growth limit for 2023, banks also reached a consensus to reduce the deposit interest rate by 0.5 percentage points before March 6.

Revealing the 2023 credit room granted for the first time by 8 banks

The State Bank of Vietnam (SBV) last week granted the first credit growth limit (credit room) in 2023 to a number of banks.

According to a close source, MSB is granted the highest credit room, at 13.5%. This is also the only bank granted credit growth higher than 2022 (9.5%).

The remaining banks are allotted a lower initial credit growth limit.

Specifically, HDBank is granted a room of 11%, compared to 15% in 2022. ACB is 9.8% compared to 10% in 2022; VIB is 9.5% compared to 2022 is 10%; TPBank is 9.1% lower than 11.5% of the previous year; VPBank and MB were both granted credit room at 9% while the previous year was 15%.

A source from the State Bank confirmed, "Basically, the above figures are correct and some figures are rounded", while emphasizing that the credit growth target has been separately announced by the regulator to the public. each bank and managed according to "inside information".

The State Bank said that this agency will regularly monitor and supervise the implementation of credit growth targets of each credit institution; on the basis of the macroeconomic situation, market developments and the credit institution's request. The State Bank will review to consider and adjust the credit growth target for credit institutions in line with the operating orientation of the Government, the Prime Minister and the direction of the State Bank in Directive 01.

New wave of interest rate cuts

After being allocated a new credit growth limit for 2023, banks also reached a consensus to reduce the deposit interest rate by 0.5 percentage points before March 6. Particularly for State-owned commercial banks, because the interest rate is already low, it will only decrease by about 0.2% per year compared to the current one.

Thus, there will be a new wave of interest rate cuts on a large scale. This means that lending interest rates will also decrease, which has a positive impact on those who need to borrow money because the cost of borrowing will decrease accordingly.

Only 4 banks have listed deposit interest rates of 9.5%/year

According to our survey at 40 banks on March 5, the highest listed interest rate is still 9.5%/year. There are 4 banks that are applying this interest rate: VietBank, SCB, HDBank, KienlongBank.

Many banks have sharply reduced interest rates to around 9%/year. For example, NamABank reduced the highest interest rate to 8.9%/year, applied for 12-14 month term. The same thing happened at BaoVietBank, the 12-month term interest rate was lowered from 9.5% to 9%/year.

Besides BaoVietBank, there are still 9 banks with interest rates in the range of 9-9.4%/year. In which, leading is VietCapital with an interest rate of 9.4%/year. VPBank and ABBank followed after recording this figure at 9.3%/year and 9.1%/year, respectively.

The remaining 7 banks all listed the 12-month term interest rate at 9%/year. This list includes SaigonBank, OceanBank, VietABank and joint venture banks or 100% foreign invested capital such as CIMB, IVB, and Public Bank.

In the Big 4 block, the highest interest rate deposited at the counter is listed at 7.4%/year. For online deposit, 3 banks BIDV, Agribank and VietinBank apply the highest rate of 8.2%/year.

Compared to the beginning of the week, in general, banks have reduced interest rates by 0.5-1%/for 12-month term deposit rates. Currently, there are 26/40 banks listing interest rates below 9%/year.

22 banks have reduced average lending rates

At the regular Government meeting in February 2023 taking place on the morning of March 3, Governor Nguyen Thi Hong said that the State Bank had directed credit institutions to actively reduce costs and reduce lending interest rates. In fact, interest rates in the market have tended to decrease. The average new lending interest rate has decreased by 0.43%/year; 22 commercial banks have reduced the average lending interest rate. In the coming time, the State Bank will continue to rationally operate in the direction of striving to reduce interest rates further.

Regarding credit, the Governor said that the State Bank set a credit growth target of 14 - 15% for the whole year, higher than 2022, and flexibly adjusted according to market movements. In February 2023, the State Bank also announced credit growth targets for credit institutions. However, as of February 28, the credit growth of the whole system remained low.

For this, the Governor said, the State Bank has reviewed, evaluated and found that the lending conditions have remained unchanged, not tightened, since the beginning of the year banks have not been restricted in terms of credit room, liquidity. redundant system, etc. Therefore, the slow growth of credit has a number of reasons: the first 2 months of the year coincide with the Lunar New Year of the Year of the Rabbit 2023; Secondly, many businesses are still affected by the Covid-19 epidemic, some businesses do not meet the loan conditions, the orders of many businesses decline, making the demand for loans not as high as last year.

In particular, credit growth for real estate was lower than in previous years, which was also the reason for slow credit growth. In previous years, real estate credit increased sharply, accounting for more than 20% of the total outstanding loans of commercial banks. However, this year, the difficult market caused real estate credit growth to slow down, although still higher than the overall credit growth of the economy.

Regarding the credit package of VND 120,000 billion for social housing and worker housing, Governor Nguyen Thi Hong emphasized that right after the National Conference on Real Estate on February 17, the SBV worked with commercial banks. about the process and procedures and will be implemented in the near future when there is a Government Resolution on the basis of the list of social housing provided by the Ministry of Construction.

18 discount bank codes in the past week

In the last trading week (February 27 - March 3, 2023), only 8/27 bank stocks gained, while the rest were all in the red.

BacABank's BAB was the biggest gainer with an increase of 8.7% in the past week. Followed by PGB of PGBank (3.4%), BID of BIDV (2.9%), STB of Sacombank (2.9%), NAB of NamABank (2.1%), HDB of HDBank (1.7) %),…

On the other side, up to 18/27 banking codes dropped last week, in which the biggest losers were NVB (-9.4%), EIB (-6%), OCB (-4.5%) ), VBB (-3.6%), MBB (-3.1%),…

The liquidity of the whole industry last week only reached nearly 6,400 billion dong, equivalent to about 1,270 billion dong/session. In which, STB was the only ticker with a trading value of over 1,000 billion dong during the week, specifically, the liquidity reached nearly 1,600 billion, double the second-ranked code VPB (716 billion dong).