Money flow moves, how much money are people depositing at the banking system?
Deposits in banks grow strongly
Specifically, at the end of March 2022, the total means of payment reached more than 13.8 million billion VND, up 3.45% compared to the beginning of the year.
Deposits into the banking system continued to grow positively. Customer’s deposit balance at the end of March 2022 reached more than 11.33 million billion VND, an increase of more than 390,000 billion VND compared to the end of 2021, equivalent to an increase of 3.6%.
In which, deposits from residents reached more than 5.47 million billion VND, an increase of nearly 174,000 billion VND in the first 3 months, equivalent to an increase of 3.28%. This increase is larger than the growth achieved in 2021 (just over VND 158,000 billion). Notably, residential deposits will grow positively in the first 3 months of the year while the same period of previous years will decrease 1-2 months due to the seasonal factor of the Lunar New Year.
Corporate deposits also increased impressively, after a decline in January due to seasonal factors, they increased sharply again in February and March. In March alone, businesses netted more than nearly half of their net deposits in banks. 230,000 billion VND. Accordingly, at the end of the first quarter, deposits of this group of customers reached more than 5.86 million billion VND, up 3.9% compared to the beginning of the year.
The picture of population’s deposit growth in the first months of this year contrasts with the gloom of 2021. Previously, last year, under the impact of the epidemic and the environment of low interest rates, people were less “salty”. but” savings, deposits of the population grow “sluggish”, there is no month to increase 1%. Even in the third quarter of 2021, when a series of provinces and cities implemented social distancing, people continuously withdrew net deposits from banks for many months. In general, in 2021, residential deposits increased by only 3.08%.
Cash flow moves when deposit interest rates continue to rise
According to BSC Securities, the record low increase in residential deposits in 2021 is due to low deposit interest rates while securities, bond and real estate channels are more attractive with high profitability. However, this trend is changing when deposit interest rates increase again and investment channels are no longer as active as before.
In May, many banks continued to adjust their deposit interest rates, whereby the highest interest rates in the market recorded a new high. At SCB, the bank has the highest interest rate of 7.55%/year, applied for a term of 18 months or more when sending online and does not require a large deposit, an increase of 0.2 percentage points compared to before.
In addition to SCB, a series of other banks have raised interest rates above 7%/year such as NamABank, VietCapitalBank, VietABank, VietBank, etc. In the group of large banks, VPBank, Sacombank, and SHB also have an interest rate of approximately 7%/year.
According to the financial statements of 28 banks, in the first quarter of 2022, only 7 banks recorded a decrease in deposits. Meanwhile, the remaining 21 banks all had positive growth, VPBank increased the most by 13.4%, followed by HDBank (9.9%), TPBank (93%), SCB (9.1%). …
Many experts believe that, in the context of high credit demand after Covid-19 as well as global inflation pressure, deposit interest rates will continue to increase in the coming time.
According to the State Bank of Vietnam, from the beginning of the year to April 25, 2022, credit growth reached 6.75%, capital mobilization increased by 3.35%. The significant difference between credit growth and capital mobilization will force banks to attract more deposits in the coming time, especially by increasing cheap capital.
In a recent analysis report, VCBS Securities Company forecast, deposit interest rates may be under pressure to increase by 100-150 bps in the whole year of 2022.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
