Previously, both individuals and firms often experiencedhigh cash demand during the months leading up to Tet, due to whichbanks’ deposits often fell.
Truong Dinh Long, Deputy GeneralDirector of the Orient Commercial Bank, told the Dau tu (Investment)newspaper that even though Tet is approaching, his bank’s deposits inJanuary rose by more than 6 percent from the month before.
Headded that idle money deposited at his bank had also increased duringthe past few months through a reduction in deposit interest rates.
Savings in banks, with an annual interest rate of 6 to 6.5 percent,are still considered more attractive than other investment channels, hepointed out.
Tran Ngoc Tam, Deputy General Director of Nam ABank also said deposits at his bank had remained healthy during thelast months of the lunar year, when both individuals and enterprisesoften reported high demand for Tet cash. Owing to this, his bank’sliquidity has remained robust.
Another reason for this is that banks have also launched more promotional schemes to lure depositors.
Le Tham Duong, the head of the Business Administration Faculty underthe HCM City Banking University, said the deposit interest rate is stillpositive, compared with inflation, so people still prefer to deposittheir spare cash in banks.
This year savings will remainintact in banks as annual deposit interest rates are still pegged at 5to 6 percent, which is higher than inflation. According to ANZ bank,inflation this year is anticipated to hover around 3 percent.
Experts also pointed out that deposits and savings are still seen assafe investments, as the central bank’s monetary policy appears to bemore supportive of the Vietnamese dong.
According to thelatest survey on business trends at credit institutions and foreignbanks’ branches during the first quarter of this year, liquidity in thebanking system has continuously improved.
Roughly 89 percentof surveyed credit institutions said their liquidity had improved fromlast year and is currently in a good condition. Strong liquidity willcontinue to be maintained this year as well, the State Bank of Vietnamforecasted.
Under the survey, the institutions alsoanticipate that their deposits will rise by 4.5 percent on averageduring the first quarter this year and surge by 14.35 percent for theentire year.-VNA
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