Banks under pressure to increase cheap capital sources

Cheap capital helps banks reduce lending rates to increase competitiveness while still maintaining high net interest margins. — Vietnam News

HANOI: Banks are under pressure to increase cheap capital sources, as the cost of capital is a vital factor for banks’ profit growth.

The cheap capital sources have become more important for banks when they have to reduce lending interest rates to boost credit growth, while still having to increase savings interest rates to lure depositors for the past three months.