Tag: casa

After the State Bank of Vietnam (SBV)’s decision to raise the operating interest rate, analysts believe that the net interest margin (NIM) in the industry will narrow but the impact will differ. Banks with high CASA ratios will be more resilient, while banks with low LDR or short-term capital ratios for medium and long-term loans will be under less pressure.

Banks have become engaged in a race to waive or reduce service and payment fees to attract CASA (Current Account Savings Account) deposits and promote services based on an expanded customer segment. Digitization has greatly reduced bank transaction costs, so cutting bank fees will not overly affect profits. Fee exemptions and reductions can therefore be viewed as a profitable strategy.