Deposits increase as banks raise rates
Deposits from organisations and individuals surpassed VNĐ7 quadrillion and VNĐ6.95 quadrillion, respectively, by late September, rising 3.4 per cent and 6.5 per cent year-on-year, SBV reported.
Deposits of economic organisations totalled more than VNĐ7 quadrillion (US$275.6 billion) and from individuals more than VNĐ6.95 quadrillion, as of the end of September, up 3.4 per cent and 6.5 per cent, respectively over the same period last year, statistics of the State Bank of Việt Nam (SBV) has showed.
In September, more than VNĐ9 trillion of idle money was deposited at banks per day on average.
Deposits increased on slight increases in deposit rates private banks.
According to Maybank Securities, as of September, deposit rates over a 12-month term rose by an average of 0.6 percentage points, from a low in March, mostly by private banks, while State-owned banks continued to control rates in an effort to maintain low level of interest rates to support economic growth.
In November, around 16 banks increased deposit rates including Kienlongbank, CBBank, SeABank, BaoViet Bank, HDBank, GPBank, LPBank, Nam A Bank, IVB, Viet A Bank, VIB, MB, Agribank, Techcombank, ABBank and VietBank.
Currently, deposit rates average around 5-6 per cent per year for terms of 12 months or longer and 4-5 per cent for shorter terms.
The SBV’s data also showed that credit growth reached 10.08 per cent, as of the end of October and is poised to 15 per cent expansion goal for the full year.
According to Nguyễn Hữu Huân from the HCM City University of Economics, as the demand for capital is often higher in the final months of the year, banks must increase deposit rates to attract deposits and prepare the resources to accelerate lending. This is not worrisome, it is just seasonal, he said.
MB Securities forecast that major commercial banks might slightly increase deposits by the end of 2024 to meet the rising capital demand for production and investment.
In late November, the SBV sent a document asking commercial banks to maintain stable and reasonable deposit rates to ensure healthy credit expansion. — VNS
