Bank deposits fell sharply

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Total customer deposits at the credit institution system as of the end of January reached more than 13 million billion VND, down nearly 200 thousand billion VND compared to the end of 2023. Of which, deposits from residents were nearly 6.5 million billion VND, down more than 34,600 billion. Deposits from economic organizations were more than 6.67 million billion VND, down more than 165,000 billion VND compared to the end of 2023. The decrease in mobilization interest rates is one of the reasons for the decline in cash flow from people and businesses deposited at credit institutions. Currently, the mobilization interest rate level at most banks does not exceed 5%/year. For short-term deposits, interest rates fluctuate between 2-4%/year, the lowest level in many years. According to financial and banking experts, deposit interest rates will hardly continue to decrease further and are forecast to gradually increase again and increase sharply by the end of the second quarter of 2024 when credit improves significantly.

Source: Thanh Hoa News, May 7, 2024

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