Brokers raise equity leverage interest after central bank hikes

By Dat Nguyen November 7, 2022 | 00:13 PT

A worker counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy

Stock brokers are raising interest on leveraged loans by about 2 percentage points to 14% a year after the central bank raised key rates twice last month.

VNDirect on Monday raised its leveraged interest rate from 11.88% to 13.8% and provided the 10.9% incentive rate to investors who select tickers from the company’s 50 best performing stocks .

Yuanta Vietnam plans to raise rates from 12% to 13.5% this week, while ACB raised rates for the first 14 days from 4.5% to 6%, while maintaining the 14% rate for ready from the 15th day.

SSI Securities hiked rates from 11.88% to 13.5%.

Smaller brokerages like Rong Viet and Ban Viet adjusted their rates from 12.2% to 13.3%.

“It’s only a matter of time for brokerages to raise interest rates after the State Bank of Vietnam raised its key rates twice last month,” an executive said. of a brokerage house based in Ho Chi Minh City.

Rates were 9-11% last year and pushed outstanding leveraged loans to over VND200 trillion ($8.04 billion), but then declined by VND170 trillion. VND in the third quarter of this year.