Deposit insurance development strategy approved
Strategy aims to protect the legitimate rights and interests of depositors.
Banks begin to cut deposit rates
The Vietnam Bankers Association previously proposed a cap of 9.5 per cent per annum on deposits.
Credit institutions anticipate interest rate rise
Credit institutions continue to expect that deposit and lending interest rates will increase in the fourth quarter. A survey by the State Bank of Vietnam found that 59-61 per cent of credit institutions expect an average interest rate increase of 0.37 percentage points in the quarter.
Liquidity tightens in banking system
A negative deposit-credit gap and the State Bank of Vietnam’s withdrawal of money have tightened liquidity in the banking system. Interbank VND rates have skyrocketed. The overnight interest rate on October 4 was up to 7.74 per cent per annum, or 2.58 percentage points higher than in the middle of last week. Deposit interest rates are expected to continue to increase in the near future.
More money going into economy and away from banks
While the idle funds of the population going to banks continues to increase sharply, deposits by economic organizations are showing signs of falling. According to analysts, the decline in deposits by the latter is a good thing, proving that the economy is actually recovering. Money is again returning to the economy through production and business activities and not stagnating at banks.