According to the latest data from the State Bank of Vietnam (SBV), deposits increased by 1.38 percent to nearly 11.1 quadrillion VND in the first two months of 2022.
Among the total, deposits of individual customers reached more than 5.46 quadrillion VND, up more than 56 trillion VND against January 2022 and 159.6 trillion VND against December 2021.
Deposits of corporate customers were more than 5.63 quadrillion VND, down 8.8 trillion VND against December 2021.
Last year, deposits of individual customers at banks declined as many depositors withdrew their savings to pour into more attractive investment channels amid declining deposit interest rates.
Experts attributed this year’s growth to banks’ application of deposit interest rate hike programmes to attract depositors. Deposit interest rates at many banks have so far increased by 0.3-0.7 percent against late last year.
Many other banks have also raised the savings interest rates for individual customers such as Techcombank, NamABank, OCB, SCB, LienVietPostBank, HDBank and ACB.
Experts said the move to increase deposit interest rates at banks during this period is understandable when credit demand is rising significantly. Credit increased by 5.04 percent by the end of March 2022, 2.3 times higher than the same period last year. This figure reflects the rapidly increasing demand for capital to serve production and business after a long period of stagnation due to the pandemic.
Saigon Securities Incorporation has recently raised its credit growth forecast in 2022 to 14.5-15 percent, 0.5-1 percentage points higher than its previous forecast. This will create significant pressure on savings and lending interest rates in the near future.
In the latest macro report, VNDirect Securities Company also said it would be difficult for savings interest rates to remain low this year due to higher capital mobilisation demand when credit accelerates. In addition, the inflation pressure and fierce competition from investment channels such as real estate and securities will cause interest rates to increase in order to attract idle cash flows.
This year, VNDirect forecast savings interest rates to rise by 0.3-0.5 percentage points and 12-month savings interest rate to reach 5.9-6.1 percent per annum by the end of the year, higher than the current average rate of 5.6 percent per annum./.
Source: vietnamplus