Bank with the Most Deposits
Statistics at banks show that interest rates at banks have been increasing continuously since the end of March this year, with a 6%/year interest rate returning to the market.
Accordingly, at a 1-month term, the highest deposit interest rate currently belongs to Bac A Bank with a 3.9%/year interest rate. At a 3-month term, the highest interest rate is 4.3%/year, currently listed by Eximbank. At a 6-month term, NCB and Bac A Bank are leading with a 5.3%/year interest rate. At a 9-month term, the highest interest rate is 5.7%/year at ABBank. At a 12-month term, ABBank has continuously led the way after increasing interest rates, listing a 6.0%/year interest rate for this term.
At a 18-month term, there are currently 3 banks leading together with a 6.1%/year interest rate, namely: NCB, HDBank, and OceanBank.
Based on the financial report for the first 6 months of 2024, the bank with the most deposits is Agribank. The total deposit amount at this bank is 183 trillion VND, increasing by 0.9% compared to the end of last year.
Ranking second is BIDV with a total deposit of 181 trillion VND, increasing by over 102,200 billion VND compared to the beginning of the year, equivalent to a 6% increase. Following is VietinBank with a balance of 147 trillion VND, increasing by 4%. Ranking fourth is Vietcombank with 137 trillion VND, decreasing by 1.5% compared to the end of last year.
In total, the Big4 group of banks has a deposit balance of 6.4 trillion VND from customers. Notably, these banks have maintained interest rates at low levels for many months, far from other private banks.
Over the past 6 months, VietinBank has recorded 2 interest rate increases, Agribank has increased interest rates once. Following Vietcombank's position is MB, the bank with the 5th most deposits in the system, with nearly 619,000 billion VND in deposits, increasing by 9% compared to the beginning of the year. In turn, the following positions are Sacombank, ACB, Techcombank, VPBank, SHB.
In general, all banks have had growth in deposit balances. The banks with impressive growth rates are LPBank, increasing by 21.4%, equivalent to 50,700 billion VND; MSB increasing by 14.7%, equivalent to 19,400 billion VND.
Has Production and Business Received the Flow of Funds?
According to the statistics of the State Bank of Vietnam (NHNN), as of May 2024, deposits of economic organizations at credit institutions (TCTD) are 6,708 trillion VND, decreasing by 1.95% compared to the end of 2023. Deposits of the people are 6,715 trillion VND, increasing by 2.8% compared to the end of 2023.
However, this does not mean that money does not flow into production and business. When looking at and statistics of the amount of deposits and credit disbursed, all figures have increased correspondingly. Like for businesses, in addition to cash, businesses still maintain the amount of deposits with or without term at the bank.
In fact, it is even the loans disbursed by businesses and people that have increased the amount of deposits at banks. Therefore, the deposit amount in credit institutions has increased, not just the amount of time deposits.
Dr. Vu Thi Dao - Institute of Economics and Finance - evaluated that the interest rate management work of NHNN in the first months of 2024 has been proactive and timely, focusing on resolving difficulties for production and business, promoting economic growth. The determination and efforts of the entire banking sector and the system of credit institutions in reducing interest rates for loans have contributed to supporting businesses and people to overcome difficulties, promoting economic recovery and growth, while controlling inflation and maintaining macroeconomic stability.
"From the beginning of May 2024, interest rates have started to increase at commercial banks due to competition for deposits when credit growth has begun to accelerate. Thus, banks will transfer a portion of the higher cost of attracting deposits to borrowers" - Dr. Dao said.
Notably, since the beginning of 2024, in order to promote credit growth, contribute to economic growth, NHNN has granted credit room to credit institutions for the first time with the goal of achieving a 15% credit growth rate for the whole year, higher than the target of 2023. Interest rates for loans at banks have been maintained at low levels to support businesses and people. The report of the General Statistics Office shows that, as of June 24, 2024, the credit growth rate of the economy reached 4.45%, close to the target set by the government.
However, when summarizing the work of the first 6 months of the year, Deputy Governor of the State Bank of Vietnam, Dao Minh Tu, frankly acknowledged that credit growth in the first months of 2024 has been slower than expected. Some credit institutions have focused on lending to high-risk fields such as real estate, concentrated lending to large customers and related parties (especially those related to bank owners), and credit growth at banks has not been uniform.
The leadership of NHNN stated that, in general, domestic credit demand has not had a strong recovery, many traditional production and service sectors are still facing difficulties. Some credit programs and policies, such as the 1.2 trillion VND package for social housing, some projects in the announced list but the investors do not have the need to borrow.
