According to the General Statistical Office (GSO), as of June 19th 2020, the total means of payment increased by 4.59 percent compared to the end of 2019 (up by 6.05 percent compared to the same period of 2019), capital mobilisation of credit institutions (CIs) increased by 4.35 percent (up by 6.09 percent compared to the same period of 2019).
Statistics of the State Bank of Vietnam (SBV) showed that by the end of 2019, the total capital deposited in the system of CIs reached more than 8,790 trillion dong. Thus, as of June 19th, the total capital mobilisation was nearly 9,200 trillion dong.
Notably, according to the SBV’s data, in the first four months of 2020, the total deposits in CIs only increased by 0.07%. In particular, the deposits of economic organisations sharply dropped by 3.9%, and deposits of people still increased by 3.36%.
Thus, the amount of deposits flowing into the banking system has rebounded sharply in the last two months of the second quarter, and the amount of deposits of businesses has perhaps recovered.
Although the increase in capital mobilisation in the first six months of 2020 is lower than the same period of last year, it is still very impressive given the very low credit growth. According to the GSO, the credit to June 19th only increased by 2.45 percent compared to the end of 2019, which is also the lowest increase in the same period of 2016 2020.
This will create a significant pressure on the cost of capital mobilisation of banks. Thus, in recent time, the savings interest rates on the market have continuously been falling down.
For example, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) has applied a new interest rate table from June 20th with a decrease of about 0.2 percentage point for many terms. The highest rate is only seven percent per annum, applicable for deposits of over 50 billion dong and on long terms. Compared to June 2019, the long-term interest rates at VPBank have declined by about 0.8 one percent per annum.
ACB has also announced a new interest rate table from June 24th with the highest rate (when depositing at the counter) being only 6.8 percent per annum, significantly down compared to the 7.35 percent in the previous time.
The interest rates of Big 4 group are even lower. Vietcombank, VietinBank, BIDV and Agribank are currently mobilising capital at 4.9 5.1 percent per annum for term of nine months, and 6.5 6.6 percent per annum for terms from 12 months or more.
