Of this amount, citizens’ deposits reached an unprecedented 6.676 quadrillion VND, a rise of 39 trillion VND from February and 2.2 from the end of 2023.

Meanwhile, corporate deposits were down 3.1 at 6.6 quadrillion VND.

The reversal of declining interest rates, which began in March last year, has led many banks to start to raise deposit interest rates since May.

Analysts expect a rise in deposit interest rates by 0.5 to 1 percentage point, reaching around 7% per year in the second half of the year.

However, the rates are unlikely to return to the high levels seen at the end of 2022, following a bank-run incident that resulted in a private lender being placed under central bank control.

Credit growth has only reached 2.4 this year, failing to meet the targets of 5 for the first half and 15 for the entire year, which analysts attribute to a sluggish real estate market.

The local real estate sector has experienced a significant downturn, leading to major developers facing challenges in repaying debt, including bond interest and principal, due to liquidity constraints and decreasing property values.

The situation escalated at the end of 2022, following the arrest of Truong My Lan, Chairwoman of Van Thinh Phat group, who is on death row for multiple financial frauds.

The arrest was part of Vietnam’s anti-corruption campaign, which intensified in late 2021.

State Bank announces 4th gold bar auction to stabilise prices

The State Bank of Vietnam (SBV) on May 7 announced a morning auction for a total of 16,800 taels of gold in Hanoi on May 8.

Central bank successfully auctions 3,400 taels of SJC-branded gold bars

The State Bank of Vietnam (SBV) released the outcome of the gold bullion auction on April 23, with two winning bidders securing 34 lots, equivalent to 3,400 taels of SJC-branded gold bars.

PM asks central bank to keep interests low and financial access easier

Prime Minister Pham Minh Chinh has tasked the State Bank of Vietnam (SBV) to keep interest rates low and financial access easier for businesses, according to a new directive on Wednesday.

Central bank pushes others to boost lending from start of New Year

The State Bank of Vietnam has issued a directive urging credit institutions to accelerate credit growth from the early months of 2024, a pivotal step toward propelling economic growth.

State Bank of Vietnam sets 15% credit growth target

The State Bank of Vietnam has set banks a credit growth target of 15% this year, up one percentage point from last year’s target.

Source: VNA