Banks have started to lower their deposit interest rates after the Vietnam Bankers Association previously called for credit institutions to bring rates down.

It has been reported that the “interest rate race” has stalled, with no banks increasing their rates over the past week after a flurry of activity in the past few months.

On December 20, Saigonbank announced new deposit interest rates, down by 0.4-1 points per annum on various tenures. Its highest rate is cut from 10.5 per cent to 9.5 per cent per annum.

On the same day, BaoVietBank reduced its one-month and three-month rates to 5.65 per cent and 5.9 per cent, respectively, per annum, with deposits for six months or 12 months standing at 8.8 per cent and 9.4 per cent, respectively, per annum. The bank’s highest rate previously jumped to 10.3 per cent per annum for a 15-month tenure.

Maritime Bank (MSB), meanwhile, lowered its rate by 0.4 points on all tenures on December 19, while OceanBank has cut its highest rate of 10 per cent down to 9.2 per cent per annum for 12-month deposits.

The Vietnam Bankers Association had previously proposed a cap of 9.5 per cent per annum on deposits.