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Tuesday, June 25, 2024

Bank deposits rise for sixth straight month

The Saigon Times

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HCMC – Bank deposits had continued to surge by the end of June amid falling deposit interest rates and a rebounding stock market, showed recent statistics from the State Bank of Vietnam (SBV).

Total deposits made by individuals and businesses into banks have surpassed VND12.3 trillion, reaching a record high, according to an announcement by the SBV on August 30.

Specifically, deposits made by local residents as of June amounted to VND6.38 trillion, an 8.82% increase compared to the end of 2022. This signifies consecutive increases since October of the previous year.

Deposits in June edged up by VND35.34 billion from the previous month. In comparison to late last year, the amount has increased by VND429 billion.

Business deposits in June have returned to the level recorded at the end of last year after experiencing declines in the previous five months. According to the SBV, by the end of June, business deposits reached over VND5.98 trillion.

In contrast, deposit interest rates are trending downward. Currently, no commercial banks are offering a deposit rate of 7% per year for a 12-month tenor. Commercial banks have lowered deposit rates for tenors from six to 12 months to 6-6.5% per year.

Regarding lending activities, the SBV stated that the banking system’s outstanding loans have increased slightly. As of July, outstanding loans had expanded by 4.56% compared to the end of the previous year.

The continuous surge in deposits made by individuals and businesses into banks, along with sluggish lending activities and debt prepayments, pose a significant challenge for the banking system, according to a representative of a State-owned commercial bank.

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