HCMC – Around VND23.8 trillion was withdrawn from the banking system in January and February, according to data from the State Bank of Vietnam (SBV), the nation’s central bank.
As of late February 2023, money supply in the banking system amounted to VND14,272 quadrillion, 0.32% higher than in late 2022. Of the total, deposits at banks reached VND11,795 quadrillion, down 0.27% compared to late 2022.
This means that as much as VND23,780 billion moved out of the banking system in the first two months of the year despite deposit rate hikes by banks.
The SBV attributed the decrease to institutional clients taking their money out.
While individual deposits by the end of February rose 5.36% over late December last year to VND6,179 quadrillion, institutional deposits at banks dropped 5.68% to VND5,615 quadrillion.
According to the SBV, interest rates in late April hovered in the range of 7% and 8.7% per year for deposits of six to 12 months, 6.7-7.9% for 13-to-21-month deposits and 7.1-8.1% for deposits of over 24 months.