Bank deposits increase at lowest rate in many years

According to data from the General Statistics Office, as of June 24, capital mobilization of credit institutions increased by 1.5% compared to the end of 2023, estimated at VND 13,575 trillion. This is the lowest increase in deposits in many years.

Over the past month, banks have also increased interest rates, with some adjusting them up to 1.7%. Interest rates have increased slightly and more and more banks are paying interest rates of 5% or more to depositors. According to experts, this adjustment is aimed at balancing the profitability of other investment channels such as USD, especially the dominance of gold in recent times…

At output, the economy’s outstanding credit debt increased by about 4.45% compared to the beginning of the year, reaching over 14.17 million billion VND. Meanwhile, the Prime Minister sets a target that by the end of the second quarter of 2024, credit growth will reach 5-6%, and the whole year will be about 15-16%. Deputy Governor Dao Minh Tu also said that he will adjust the targets of banks with unsatisfactory credit growth to proactively create conditions for banks with the ability to develop credit.

However, industry insiders agree that demand for loans from businesses and individuals is weak. Many banks even saw negative growth in the first months of the year.

Regarding retail customers, Mr. Trinh Bang Vu, Head of Retail Loans at Shinhan Vietnam Bank (Shinhan Bank), said that demand for credit for home loans, car purchases and consumer loans are weak.

Mortgage lending, which contributes a large proportion to the retail sector, still recorded a gloomy situation despite low interest rates. The real estate market is sluggish, the supply of apartment segments is increasingly limited while people’s borrowing capacity is decreasing. Therefore, the low interest rate factor, according to Mr. Vu, is not enough to increase outstanding loans for home purchase. In the short term, outstanding loans for this sector are still not optimistic until there are fundamental changes to help the market recover.

Experts from the International Monetary Fund (IMF) assess that prolonged weaknesses in the real estate market and corporate bond market may have a stronger impact than expected on the ability of banks to grant credit. , harming economic growth as well as weakening financial stability. Policies, according to the IMF, should continue to focus on enhancing financial stability, requiring improvements in asset quality and avoiding excessive credit growth of low quality.