More depositors save idle cash thanks to increases in savings interest rates
According to the state bank, deposits at banks increased in the first four months of 2022. The total capital mobilization of banks in the city is estimated to increase by 2.74 percent compared to the end of 2021 including deposits of individual customers surging by 3.26 percent. This capital mobilization rate is higher than that during the same period in the last two years. Specifically, it increased by 1.25 percent in 2020 and by 0.13 percent in 2021 respectively.
According to the State Bank’s information, people's idle cash is returning to the banking system. Specifically, deposit growth in the first two months of 2022 increased to reach more than VND159,600 billion, higher than the number in the whole year of 2021 with more than VND158,600 billion.
Experts attributed this year’s growth to banks’ application of deposit interest rate hike programs to attract depositors; plus, banks offered many preferential programs to attract idle cash.
Investment channels such as real estate, securities, and gold fluctuated strongly in the past time, also contributing to the idle cash flow to the deposit channel due to its stability. This development creates conditions for credit institutions to have capital to support businesses to develop production and business and recover from the coronavirus epidemic.
