On October 22, the State Bank of Vietnam (SBV) Ho Chi Minh City branch announced that the total capital mobilized by credit institutions in the area in the first 9 months of 2024 increased by 7.76% compared to the end of 2023, equivalent to the outstanding loan amount reaching more than USD 3.8 million billion.

According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, the capital mobilization growth rate as of the end of September 2024 increased by 7.76% compared to the end of 2023 and increased by 13.2% over the same period.

Of which, VND deposits account for more than 90% of the total deposits of credit institutions in the area. According to the State Bank of Vietnam, Ho Chi Minh City branch, deposits of economic organizations and individuals, savings deposits of residents and credit institutions issuing valuable papers, all had positive growth rates in the first 9 months of 2024.

Statistics from the State Bank of Vietnam, Ho Chi Minh City branch, show that in recent months, the total capital mobilization of credit institutions in the area has tended to grow faster than at the beginning of the year, bringing the total capital mobilized by credit institutions in the area to more than VND 3.8 million billion as of the end of September 2024.

According to a State Bank representative, the growth in the scale of capital mobilized through the banking system is a positive signal for capital circulation in the economy. In particular, public investment, savings and consumption have been moving in a better direction.

According to current regulations, the non-term deposit interest rate for VND of commercial banks is currently still applied at a maximum of 0.5% p.a.; the maximum interest rate for terms from 1 month to less than 6 months is 4.75% p.a. For terms from 6 months or more, credit institutions can negotiate mobilization interest rates according to market supply and demand.

In the current deposit market, large-scale commercial banks apply an average deposit interest rate of 6 months or more at over 5% p.a., while small-scale commercial banks apply an interest rate of over 6% p.a.

In the market, several banks have increased deposit interest rates but mainly for short terms and small-scale banks have created long-term certificates of deposit with interest rates of around 7% p.a. to diversify products to attract depositors to the bank.

Kylie Nguyen