Low capitalisation: The State Bank of Vietnam in Hanoi. Several of the country’s big banks lowered rates on deposits last month. — AFP
HANOI: Several banks swiftly lowered deposit interest rates last week, paving the way for reductions in lending rates in the near future to bolster businesses and fuel recovery.
While this appears beneficial for the broader economy, the policy’s ripple effects on bank liquidity and capitalisation are becoming increasingly evident.
