Deposits at all banks, including the Saigon Commercial Bank (SCB), are guaranteed by the State in all cases, Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong affirmed on October 10 when talking to the media regarding recent issues related to the SCB.

The Vietnamese central bank’s move to lift short-term deposit rate caps is likely to raise the average cost of funds – both deposit and interbank rates – for Vietnamese commercial banks.

Experts forecast that bank net interest margins (NIM) will decline as inflation rises next month.

Thanks to increases in savings interest rates, deposits at banks increased strongly in the first two months of this year after declining last year.

The deposit growth rate of individual customers at banks slowed last year due to the impacts of the pandemic.

Many banks have increased their interest rates to attract more depositors after getting a credit growth quota expansion from the State Bank of Vietnam (SBV).

Deposit interest rates at commercial banks will continue to decrease and remain at low levels in the coming months, analysts forecast.

The State Bank of Vietnam (SBV) will keep the current deposit interest rates and lending rates unchanged until the end of this year to ensure the banking system’s liquidity and benefits for depositors.

Many businesses suggested more detailed policies should be issued to help them access bank loans as there remain difficulties in lending.

The Ho Chi Minh City People’s Committee has made several suggestions for the Ministry of Finance’s decree to support businesses and individuals affected by the COVID-19 pandemic, including ensuring bank lending rates are no more than 2% higher than deposit interest rates.