Deposit interest rate hiked

A number of private banks, including the largest KBZ Bank, have recently announced an increase of deposit rate from 8 per cent to 8.25.

The banks, however, keep the borrowing rate at 13 per cent.

The rate adjustment happened in the wake of the Central Bank of Myanmar announcement on approval plans for foreign banks to set up branches.

The central bank set the minimum and maximum interest rates between 8 and 13 per cent to control inflation.

Asia Green Development Bank announced a raise in the interest rate on deposit from 8 to 8.25 percent with effect from July 1. Co-operative Bank promised to do the same.

"We are able to offer the interest rate at 8.25 per cent. This means a person who deposits Ks 100,000 (US$100) with those banks will receive Ks 687 ($0.68) in interest at the end of the year instead of the usual amount of Ks 666 ($0.66)," said Thet Ko Ko Myo, deputy general manager from KBZ Bank.

The KBZ Bank, boasting the largest number of branches in Myanmar, said it would increase the interest rate for fixed deposit.

Thet Ko Ko Myo said the interest rate on one-month fixed deposit has been raised from 8 per cent to 9, 3-month deposit from 8.5 per cent to 9.5, 6-month deposit from 9 per cent to 9.5, 9-month deposit from 9.5 per cent to 9.75 and one-year deposit remaining at 10 per cent.

There are 22 local private banks and 42 foreign bank offices in Myanmar.

source: Eleven Myanmar

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