Individual savings at banks surge over 17 percent

 

Hanoi (VNA) - Savings at banks remained attractive to locals, with deposits of individuals in the first nine months of this year seeing a sharp surge of more than 500 trillion VND (22.02 billion USD).

According to a report from the State Bank of Vietnam, individuals deposited nearly 3.5 quadrillion VND at banks in the first nine months of this year, up 17.08 percent against late last year. Savings at banks by institutions during the period also rose 10.65 percent to 2.34 quadrillion VND, the central bank reported.

Despite low interest rates, depositors said they preferred savings at banks since it was absolutely safe, while other investment channels, such as securities and real estate, had high risks.

According to the central bank, currently, the popular deposit interest rates are 0.8-1 percent per year for demand and under one-month terms, and 4.5-5.4 percent for 1-6 month terms. The popular rates applicable for medium- and long-term deposits of 6-12 months and above 12 months are 5.4-6.5 percent and 6.4-7.2 percent, respectively.

In the past week, several commercial banks, such as BIDV, Agribank, Techcombank and Viet Capital Bank, unexpectedly slightly cut dong-denominated deposit interest rates by 0.1-0.3 percent per year to balance their liquidity and cut input costs.

Thanks to the increase in deposits, liquidity at commercial banks this year is abundant, helping the banks in lowering lending rates to support domestic production and business.

The central bank reported that lending of the banking sector as of November 22 had expanded by around 14 percent against December last year, with dong loans rising 15.3 percent. The central bank’s credit growth target of 17-18 percent this year is feasible with focus on five prioritised sectors of agriculture, exports, spare-parts industries, high-tech, and small- and medium-sized enterprises.-VNA