Corporate deposits in the banking system unexpectedly increase sharply after 5 months of decline

08/31/2023 11:49 Nhat Linh Print article

ANTD.VN - The growth rate of residential deposits in the banking system recovered in June, while deposits from economic organizations also unexpectedly increased sharply after 5 previous months of decline.

The State Bank has just announced the latest statistics on the total amount of deposits of residents and economic organizations in the banking system as of the end of June 2023. Accordingly, the total deposits have reached the highest level ever with more than 12.3 million billion VND.

Of which, residents' savings deposits by the end of June reached more than 6.38 million billion VND, an increase of 8.82% compared to the end of 2022 (equivalent to an increase of more than 429,000 billion VND).

Thus, compared to May, residents' deposits in the banking system increased by VND35,341 billion, marking the 8th consecutive month of increase since October last year. The number of residents' deposits also improved significantly compared to the increase of VND14,700 billion in May compared to April, although it was still lower than the first months of the year.

Previously, residential deposits increased by VND177,300 billion in January; increased by VND137,000 billion in February; increased by VND100,800 billion in March and increased by more than VND52,000 billion in April.

Corporate deposits in the banking system suddenly increased sharply after 5 months of decline photo 1

Deposits into the banking system accelerated again in June

Meanwhile, deposits from economic organizations also unexpectedly increased again in June with VND235,438 billion added to the banking system. Previously, deposits from credit organizations had decreased for 5 consecutive months.

Accumulated to June, the amount of deposits of economic organizations reached more than 5.98 million billion VND, a slight increase of 0.51% compared to the end of last year. Meanwhile, before that, by the end of May, deposits of economic organizations even decreased by 3.45% compared to the end of 2022.

Deposits in the banking system showing signs of accelerating again amid very low interest rates seem to be a strange development. However, in the context of many uncertainties in the world and domestic economy, investment and production activities of people and enterprises are increasingly difficult, depositing money in banks is still the choice of many people.

Because in fact, depositing money in the bank is an almost absolutely safe solution and is still profitable, especially compared to investment channels that have been almost frozen recently such as real estate, gold, virtual currency...

For businesses, prolonged production and business stagnation is also the reason why cash flow is brought back into the banking system.

Difficult production and business activities also lead to a decrease in credit demand, money is "stuck" in banks, leading to continued decline in deposit interest rates with recent sharp declines.

Accordingly, at the four major state-owned banks including Vietcombank, VietinBank, Agribank, and BIDV, the highest interest rate applied for terms of 12 months or more is now only 5.8%/year. For terms from 6 months to less than 12 months, people only enjoy interest rates around 4-5%/year.

At private joint stock commercial banks, the 7%/year interest rate is becoming increasingly rare and often requires large deposits and long deposit periods.

Thus, compared to June, the average interest rate has decreased by about 0.5 - 1% depending on the bank and term, and compared to the beginning of the year, it has decreased by 3 - 4%/year.

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