HCMC – Deposits in the banking system last year soared by 14% year-on-year to an all-time high of over VND13.5 quadrillion, said a leader of the State Bank of Vietnam (SBV) during a conference on January 8.
Despite annual interest rates remaining below 6%, funds still flowed into the banking system, instead of real estate, securities and others. Interest rates fell by more than 2.5 percentage points against 2022.
Net deposits made by individuals and businesses increased by VND1.7 quadrillion, much higher than the average of VND1 quadrillion recorded in previous years.
By the end of 2023, credit had expanded by 13.7%, with a notable acceleration of 2.5% observed in December, injecting around VND300 trillion into the economy.
At the conference, Prime Minister Pham Minh Chinh commended the SBV’s management of credit growth and timely policy interventions. He said that the SBV had effectively addressed policy obstacles and issued circulars 03, 06, and 10 to support the development of the corporate bond market and the real estate market.
In addition to credit growth, the central bank’s effective monetary policy management played a role in maintaining macroeconomic stability, keeping inflation under control at 3.2-3.4%, said SBV Governor Nguyen Thi Hong.
