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SSI: Deposit interest rates have increased by 0.3-0.5 percentage points compared to the end of 2021
According to SSI, the pressure to increase deposit interest rates, reflected in the difference between credit and deposit, has fallen to the lowest level in 8 years.
The recent money market report of SSI Securities JSC said that the deposit interest rates for individual customers continued to be slightly increased in the early days of May at some small and medium-sized banks.
Meanwhile, the deposit interest rate for institutional customers was also adjusted to increase by about 0.2 percentage points in the group of large joint stock commercial banks.
In fact, except for the group of state-owned joint stock commercial banks that have not yet recorded any adjustment, the deposit interest rate has increased by about 0.3-0.5 percentage points compared to the end of 2021 at most of the joint stock commercial banks in order to attracting idle cash flow in the context of strong credit growth in the first four months of the year.
According to SSI, the pressure to raise deposit interest rates is also reflected in the difference between credit and capital mobilization, which has fallen to the lowest level in 8 years. Data from the SBV shows that credit as of April 25 has increased by 6.75% compared to the end of 2021 (equivalent to 16.4% compared to the same period last year) while capital mobilization increased by only 3.55% (equivalent to 10.7% over the same period).
In the past week, open market activities recorded a net withdrawal of nearly 2,800 billion dong, mainly because there were 3,100 billion dong of bills maturing on May 13 and the State Bank (SBV) only injected 1,700 billion dong through through a 14-day term purchase with an interest rate of 2.5%.
The improved liquidity helped the VND interest rate in the interbank market remain below 2%. At the end of the week, overnight term was at 1.85% (decreased by 0.137 percentage points from last week) and one-week term was at 2.25% (decreased by 0.171 points). Interest rates for long terms fluctuate between 2.4% - 2.9% and the yield curve has returned to normal.
- Credit growth in HCMC is estimated at 2.43% in the first five months of the year
- 12-month term deposit interest rate is forecast at 6.5-6.7 p.a. at the end of the year
- As of the end of May, VND has appreciated by 0.6% against USD
- SBV to revise Circular 39 to be more open but not to loosen lending standards
- Experts: SBV's interest rate cuts will have a positive impact on the economy
- SBV cuts policy interest rate for the 3rd time in 2023
- State Bank of Vietnam considers further interest rate cuts
- Volume of cashless payments increased by more than 53% in the first three months of the year
- Moody's: Vietnam's foreign exchange reserves will increase to USD 95 billion by the end of 2023
- Average loan interest rate can be lowered to 10% p.a.