Bank deposits increased sharply
(Updated at 12:39, 8/1/2018)
Low interest rates and USD deposits are not profitable, however, the amount of money mobilized by banks from the population and businesses still grows sharply.
According to the Report on the economic situation in 2017 of the National Financial Supervisory Commission, in 2017, the amount of deposits (including economic organizations and residents) increased by 19% (increased by 19.3% in 2016). In particular, the mobilization through the issuance of valuable papers increased sharply by 38%, as some credit institutions issued certificates of deposits to increase secondary capital to improve the CAR (minimum capital adequacy ratio) and to restructure the term of mobilized capital.
Capital mobilized in VND accounts for 90.5% of total mobilized capital (89.1% in 2016). Foreign currency deposits accounted for about 9.5% (10.9% in 2016). The proportion of foreign currency mobilization decrease due to the ceiling interest rates of USD mobilization at 0%, the USD/VND exchange rate was stable. Term deposit s accounted for 80.9% of total deposits (79.7% in 2016), the rest was from call deposit.
In fact, in 2017, deposit interest rates fluctuated quite significantly and there is a clear difference between the groups of state and private commercial banks, in which the deposit rates of big banks such as BIDV, VietinBank and Vietcombank are only 4.3-7% per annum for terms, 0.3 percentage point to 1.3 percentage points lower than interest rates in private sector banks, depending on the term. However, it seems that this difference in interest rates does not affect capital mobilization situation of banks.
Due to the strong demand for capital mobilization, many banks have introduced deposit certificates to attract customers, with flexible terms ranging from 12 months to 5 years, are very high interest rates, up to 8.3 - 9% per year. This also attracted the attention of people who have idle money.
At the outflow of capital, according to a report by the National Financial Supervisory Commission, in 2017, credit growth is equivalent to that of 2016, or about 19%. Credit market share is mainly held by the group of State-owned commercial banks and joint-stock commercial banks, accounting for 51.8% and 41.3% of the system respectively. The credit growth has been high and stable for three consecutive years, from 2015. The Commission forecasts that in 2018, credit growth is likely to continue as in previous years and reach about 18% -19%.

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