Banks must cut their interest rate in the difficult time.— Photo Tinnhanhchungkhoan

HA NOI (Biz Hub) — The Bank for Investment and Development of Viet Nam (BIDV) on Wednesday cut its monthly deposit interest rate for the Vietnamese dong to 5 per cent, as much as a 1.5 percentage point lower than its old rate.

The bank, which is the third bank to reduce their monthly interest rate by 5 per cent after Vietcombank and Agribank, is applying an interest rate of 6 per cent for loans with 2 month terms.

In addition, Vietinbank also reduced their rate from 6.5 to 6 per cent for loans with one and two month terms.

According to the banks, the reduction aims to ease the pressure of interest payments to lenders during difficult economic times when loans are harder to secure. During the first six months of this year, many banks have reportedly tightened their lending.

Meanwhile, after the State Bank of Viet Nam intervened in the forex market, most banks reduced their exchange rate to below the ceiling price of VND21,246 yesterday. However, some commercial banks increased US dollar prices by VND6-10 per dollar, making their selling price for one US dollar reach the ceiling price of VND21,246. In the open market, the price of one US dollar is at VND21,500.. — VNS