Bank deposits fall 1.07pct as of Sept. 23

The credit for the economy as of September 23 decreased 0.94% from the previous month, of which, credit in foreign currency posted a fall of 2.27% month on month, Vietbiz24.com cited the State Bank of Vietnam (SBV)’s website.
Accordingly, the credit for the economy as of September 23 increased 8.16% from the end of last year. However, it declined 0.94% compared to the previous month, of which credit in dong fell 0.49% month on month and in foreign currency down 2.27% m-o-m.

The total deposits of customers at credit institutions as of September 23 increased 9.82% compared to the end of last year but decreased 1.07% from the end of last month.

From September 7, commercial banks started to implement the central bank’s Instruction No 02 on dong deposit interest rate cap of 14% per year.

Then, some commercial banks said that a significant amount of capital had been withdrawn from banks.

According to Thoi Bao Ngan Hang (Banking Times) newspaper, as of September 17, Nam Viet Bank posted a withdrawal of 537 billion dong. Dai A Bank’s total deposits as of September 12 decreased 0.2% from September 9. Viet A Bank also suffered a withdrawal of 50-60 billion dong each day.

The total means of payment as of September 23 also soared 8.87% from the end of 2010 but declined 0.86% against previous month, of which, cash circulation outside the banking system increased 0.57% month on month and 2.82% on year.

Also as reported by the central bank, in September, the deposit interest rate in dong of credit institutions from September 7 was commonly at 14% per year. However, some commercial banks applied the interest rate of 14% per year for daily and weekly term deposits.

The lending interest rate in dong was stable in July, August and the first half of September and so far it tended to fall. Currently, the lending interest rate in dong for agriculture and rural area and export is at 17-19% per year, 17-21% per year for other production and business sectors and 22-25% per year for non-production sector.

Meanwhile, the deposit interest rate in US dollar was commonly at the ceiling of 2% p.a. for individual depositors and 0.5% p.a. for institutional depositors. The lending interest rate in US dollar remained stable from the end of June to stand at 6-7.5% p.a. for short terms and 7.5-8% p.a. for medium and long terms.

In the first week of September, the interbank interest rate surged suddenly, so the central bank had to support the temporary liquidity for banks via the OMO. Presently, the overnight lending interest rate stands at 12-13% p.a., 1-2 weeks at 13.5-14% p.a. and one month at 14.5-15% p.a.
Source: Vietbiz24.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial