Deposits from the public continue to set new records.

On October 6th, the State Bank of Vietnam announced statistics showing that, as of the end of July, the balance of household deposits in the banking system reached VND 6,389,593 billion, an increase of 8.93% compared to the end of 2022.

Thus, the amount of savings deposited by the public into banks has continuously increased for one year. The deposit balance of each subsequent month has consistently surpassed the record of the previous month's deposit balance.

Compared to the end of August 2022, the total balance of savings deposited by the public in banks has increased by nearly 752,600 billion VND.

Compared to June, the balance in July surpassed the record set in June, increasing by 6,707 billion VND.

As for deposits from economic organizations, according to the State Bank of Vietnam, as of July, the balance reached VND 5,909,707 billion, a decrease of more than VND 74,200 billion compared to June.

According to our reporter's survey, bank deposit interest rates continued to fall today. This downward trend has been observed for the past three months, even reaching a new low after Vietcombank announced a further reduction in interest rates, down to 5.3% per year.

As of the evening of October 6th, three banks in the Big4 group have yet to reduce deposit interest rates. They are still maintaining the same rates as in mid-September. The highest savings deposit interest rate is 5.5% for a 12-month term.

According to a survey conducted on October 6th, the banks offering the highest interest rates for 12-month terms are DongABank (6.75%/year); BaoVietbank (6.3%/year); NCB (6.3%/year)...

However, deposit and lending interest rates have not decreased at the same pace. The average lending interest rate for new transactions has decreased by about 1% compared to the end of 2022.

The bank is "treating the problem of excess money".

Speaking at the regular government press conference in September, held on the afternoon of September 30th, Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, stated that as of September 30th, the total mobilized capital of commercial banks reached approximately 12.9 million billion VND, an increase of about 5.9% compared to the end of 2022.

Meanwhile, in terms of lending, as of the end of September, the total outstanding loans of the economy reached approximately 12.6 million billion VND, an estimated increase of 6.1-6.2% compared to the end of 2022.

Deposit interest rates have fallen sharply as banks are trying to "cure excess liquidity," meaning they are mobilizing more deposits than they are lending out.

Source