Experts: Trimmed interest rates might affect NIMsCommercial banks which have cut interest rates for short-term lending following the State Bank of Vietnam (SBV)’s cue might suffer a further decline in the net interest margin (NIM), experts said. Net Interest Margin of commercial banks in 2016 (percent)On July 7, the SBV decided to cut the annual maximum refinancing interest rate, rediscount interest rate and overnight interest rate applied to electronic inter-bank payments. NIM is the ratio of net interest income to invested assets, with the net interest income being the difference between interest income and interest expense. To prepare for the deadline, it is unlikely that commercial banks will further push down their deposit interest rates. Otherwise, they would face difficulties in term of liquidity and their net interest income would be harmed, financial expert Nguyen Tri Hieu said.

Source: VietNamNet News July 13, 2017 04:07 UTC