Last week, commercial banks continued to reduce deposit rates. On October 8, 2020, VPBank applied a new deposit rate schedule with interest rates plummeting for 6-month and above terms. Previously, on October 1, after the State Bank announced the reduction of the operating interest rates and the regulation on the deposit interest rate cap applicable to demand deposits and terms less than 1 month was 0.2% / year; 1-6 month terms decreased to 4.0% / year…; VPBank and many other commercial banks have immediately applied the new deposit rates. Thus, in just over a week, this bank has twice adjusted to lower deposit rates.
Money still flows partly into the bank despite low interest rates. Photo: B.L
In the past, the deposit rates at state commercial banks and large joint stock commercial banks were often lower than those of small banks. But currently the difference between these two blocks is not much. Deposit rates are already at a very low level. The lowest deposit interest rate on the market is currently 0.10% / year, the highest is 7.25% / year (for a period of 15 months to 60 months).
Every year, every year, at the beginning of the fourth quarter, banks start to launch a series of promotions, lasting until the Lunar New Year, in order to increase the mobilization of capital to serve credit needs, which often spike. the last months of the year. However, this year is different. Translation of Covid-19 is still very complicated in the world; In the country, although we are controlling very well the epidemic, world supply chains are broken; demand for goods and consumption decreased, causing production and business in many industries to stagnate… making demand for credit plummeted. Although credit institutions have been making great efforts to support customers, from service fee exemption and reduction to unprecedented preferential interest rate credit programs, but by the end of September 2020, credit only increased at 6.09%; while mobilizing capital increased by 7.7%.
The excess capital has caused the interbank interest rate to drop sharply and banks are boosting buying bonds. According to information from Hanoi Stock Exchange (HNX), in September 2020, HNX held 22 auctions, mobilizing a total of 60,141 billion dong of bonds, up 163% from the previous month. In which 100% of the bonds raised are issued by the State Treasury. The successful bid-winning rate in September 2020 reached 98%, the bidding volume was 3.5 times higher than the bid-calling volume.
Although credit demand has begun to improve (it is forecasted that credit growth for the whole year will be about 9-10%), but talking about raising capital at this time seems inappropriate. However, looking further, whether or not the world must live in new normal conditions. The physical and mental needs of human beings still need to be met. Therefore, production and business can not be stopped forever. The banking system still has to play well the role of borrowing to lend. Therefore, raising capital is still an important business segment of the bank. On my side, what do depositors think?
Ms. Hoi (Dong Da District – Hanoi) – a retired official but has a house on the street for rent, so the total income per month is not less. She said, with a nephew working at BIDV, “the bank interest rates are now low, but I still send them because I don’t know what business. But each time you go to the bank you can “gossip” with your grandchild.
Ms. An – in charge of the detergent business of a supermarket and outside business, monthly income is also abundant. She has just sold a lot of corporate bonds, received hundreds of million dong, but is still “hanging” in her checking account. Because “interest rates are too low, there is no term or no term is not much difference, just leave money in the bank for safety and then calculate later”.
Ms. Nga – has a grocery store at home. While selling goods, watching TV, surfing the web, he is quite familiar with the current news: The Prime Minister said that both preventing epidemics and developing the economy, the situation will gradually improve. I have a short term deposit at the bank so that at the end of the year I need to import more goods to sell. “The accumulated money I send to CB bank, the interest rate is much higher than other banks”.
That is what the writer of this article “edited” when a group of women, ladies in the same neighborhood “traded melons” at the coffee shop together, commented on the bank across the street has just displayed an interest rate board.
The leader of a large commercial bank said that the deposit interest rate is low, while other investment channels are quite attractive, so keeping customers who deposit money is not easy. If we cannot keep a certain volume and number of depositors, banks will have difficulty when demand for credit increases again. And a customer usually not only sends money, but they can also use other bank products and services.
Source: ndh.vn – Translated by fintel.vn
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