According to the State Bank, people's deposits in the banking system at the end of March were 6.28 quadrillion VND, up 7% compared to the beginning of the year.

In the first 3 months of this year alone, people "net deposited" an additional 415,000 billion VND into the system. On average, over the past 7-8 years, the amount of money people deposited into the banking system in the first quarter of the year was only about 150,000 billion VND.

In fact, people's deposits began to flow strongly into the system since October last year, due to the attractiveness of savings interest rates. Interest rates in the first 3 months of this year have cooled down compared to the end of 2022 but still maintain a high level compared to the pre-Covid-19 period.

Since April, savings interest rates have fallen more rapidly and strongly, making the deposit channel less attractive. At the end of May, most banks adjusted their interest rates to bring the highest listed rate to 8.5% per year, following the State Bank's move to lower the operating interest rate.

Contrary to the population trend, the amount of deposits of organizations at banks at the end of the first quarter decreased by nearly 4.9% compared to the beginning of the year, down to 5.66 million billion VND.

Institutional deposits in the banking system have tended to stagnate in recent years, while they have grown steadily in previous years. This is happening in the context of real estate businesses facing liquidity difficulties and manufacturing and business groups lacking orders and shrinking their scale.

The opposite trend between residential and corporate deposits has caused the total amount of deposits flowing into the banking system to increase by only 1%, equivalent to nearly 150,000 billion compared to the beginning of the year. However, according to experts, the liquidity of the banking system is currently somewhat redundant in the context of unprecedentedly low credit growth in many years.

Quynh Trang