In January 2010, total deposits of credit institutions rose by around 0.3 percent month on month while total outstanding loans only surged 1 percent m-o-m, according to the statistics of SBV.
Usually, the capital demand of enterprises after this Lunar New Year will slow down because the government’s short term lending rate subsidisation policy for the dong ended and SBV limited the credit growth at lower than the previous year. More importantly, the deposits sent at banks are mainly in short term.
Deputy General director of Maritime Bank, Pham Dinh Tung said that with the current market movements, it is hard to forecast the growth trend of savings after Tet holiday. Banks are applying the deposit rate of 10.499 percent pa on all terms. Furthermore, some banks boost promotions whereby the real deposit rates have surpassed the allowable ceiling level.
However, the capital mobilisation of banks has not been improved so the banks are facing difficulties in balancing capital source.
According to general director of a bank, if the basic rates are not adjusted soon then it is harder for banks to mobilise capital. Especially the stock market is predicted not to slump deeply and the real estate market is likely to recover in last half of 2010, which will become two attractive investment channels as for idle capital from residents.
Therefore, banks are racing to launch many new products to keep available savings and attract more capital. An official from Sacombank stated that his firm is studying to offer investment saving products in the coming time.
In long term, Maritime Bank plans to find out specialised products to raise medium and long term capital. Factually, the raising of medium and long term capital is a difficult problem for banks while SBV targets to continue maintaining medium and long term lending rate subsidisation. So, a banker proposed SBV to consider abolishing ceiling deposit rates to help banks. He admitted that higher deposit rates will push up the capital business costs and the profit banks can earn will be lower.
IMF forecasts that the world’s economy will recover in 2010 at a rate of 2.5 percent. Similarly, Business Monitor International (BMI) predicts that Vietnam’s basic rates will be gradually increased in first half of 2010. Basic rate of Vietnam by late 2010 could stand at 8.5-9.5 percent.
Nguyen Hung Manh-general director of ABBank said that commercial banks still have to compete vigorously with each other to woo deposits through launching promotion programmes, diversifying services and upgrading the service quality. In 2010, ABBank’s capital mobilisation is targeted to grow 61 percent year-on-year to 20.399 trillion dong.
Highest lending rate of banks now is 12 percent pa and deposit rate peaks at 10.5 percent pa.