People's deposits continue to set new records

On October 6, the State Bank announced statistics showing that as of the end of July, the balance of people's deposits in the banking system reached VND 6,389,593 billion, an increase of 8.93% compared to the end of 2022.

Thus, the savings balance of residents deposited in banks has continuously increased in 1 year. The deposit balance of the following month continuously "overthrew" the deposit balance record of the previous month.

Compared to the end of August 2022, the total balance of savings of residents deposited in banks has increased by nearly 752,600 billion VND.

Compared to June, the balance in July exceeded the record of June when it increased by 6,707 billion VND.

As for deposits of economic organizations, according to the State Bank, as of July, the balance reached VND5,909,707 billion, down more than VND74,200 billion compared to June.

According to a reporter's survey, bank deposit interest rates continued to decrease today. The downward trend has been recorded for the past 3 consecutive months, even reaching a new low after Vietcombank announced a further reduction in interest rates, down to 5.3%/year.

As of the evening of October 6, 3 banks in the Big 4 group have not yet made any moves to reduce deposit interest rates. They are still maintaining the same deposit interest rates as in mid-September. The highest savings interest rate is 5.5% for a 12-month term.

Surveyed on October 6, banks with the highest interest rates for 12-month terms are DongABank (6.75%/year); BaoVietbank (6.3%/year); NCB (6.3%/year)...

However, currently, deposit interest rates and lending interest rates have not decreased at the same pace. The average lending interest rate of newly arising transactions has decreased by about 1% compared to the end of 2022.

Banks are "treating excess money"

Speaking at the regular September Government press conference held on the afternoon of September 30, Deputy Governor of the State Bank Dao Minh Tu said that as of September 30, the total mobilized capital of commercial banks reached about 12.9 million billion VND, an increase of about 5.9% compared to the end of 2022.

Meanwhile, in terms of lending, by the end of September, the total outstanding debt of the economy reached about 12.6 million billion VND, estimated to increase by 6.1-6.2% compared to the end of 2022.

Input interest rates have fallen sharply in the context of banks "treating excess money", meaning they are mobilizing more than they are lending.

Source