The State Bank requires stable deposit interest rates

Implementing the Prime Minister’s direction on reducing lending interest rates, the State Bank has just sent a document to credit institutions.

Accordingly, the operator requires banks to maintain a stable deposit interest rate level, consistent with their capital balance ability, healthy credit expansion ability and risk management capacity. Mobilization interest rates need to be kept at a reasonable level, contributing to stabilizing the monetary market and output interest rates.

At the same time, the regulatory agency also reminded banks to simplify lending procedures, increase the application of information technology and digital transformation in the process… to strive to reduce lending interest rates and promote production. export business.

According to data from the State Bank, interest rates have decreased by about 2.5% in 2023 and continue to tend to decrease in the first 10 months of 2024. As of October 20, interest rates are currently reduced by about 0, 76% compared to the end of 2023.

Recently, private banking groups have tended to slightly increase deposit interest rates to boost credit growth in the year-end season. According to the analysis team of Vietcombank Securities Company (VCBS), the pressure to increase interest rates is higher for banks with large dependence on customer deposits and less flexible capital mobilization structure.

At the same time, the difference between deposit balances and credit balances throughout the system remains high. This may continue to put pressure on deposit interest rates in the near future at some small-scale banks, in order to increase the competitiveness of deposit channels compared to yields of other investment channels. on the market.

For the state-owned banking group, VCBS expects deposit interest rates to remain flat, and may even decrease slightly at the end of the year to support the economy.