On average, in the last 7-8 years, deposits of individual customers at banks in the first quarter of a year was only VND150 trillion.

Stacks of money at a bank.

Individual deposits in the banking system at the end of March were VND6.28 quadrillion, up 7% over the beginning of this year, according to the central bank.

Individual deposits began to flow strongly into the system in October last year when interest rates for savings accounts were high.

Interest rates in the first three months of this year were lower than late last year, but still maintained high compared to the pre-pandemic period.

Since April, interest rates have decreased faster and more strongly, making the deposit channel less attractive.

At the end of May, after the central bank slashed policy interest rate, most commercial banks lowered deposit interest rates, bringing the highest rate to 8.5% a year.

Unlike deposits of individual customers at banks, deposits of institutional ones at the end of the first quarter decreased by nearly 4.9% against the beginning of the year to VND5.66 quadrillion.

Institutional deposits in the banking system have tended to move sideways in recent years, while having grown steadily in previous years.

This happened in the context of real estate firms having difficulty in liquidity, and many producers and exporters receiving few orders and then narrowing their operations.

The total amount of individual and institutional deposits at banks in the first quarter increased 1%compared to the beginning of the year.

The liquidity of the banking system, according to experts, is somewhat redundant in the context of unprecedented low credit growth in recent years

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Source: VnExpress