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State Bank of Vietnam (SBV) has recently reported that total deposits at banks and credit institutions in January saw a rise of only 0.3 percent against last December. State Bank of Vietnam (SBV) has recently reported that total deposits at banks and credit institutions in January saw a rise of only 0.3 percent against last December.

Meanwhile, total outstanding loans of wholly banking system till the end of January increased 1 percent against December 2009.
At present, banks increased the deposit rate to 10.49 percent per year for terms of from one month to 12 months. Some others are applying the deposit rate at 10.499 percent per year because they can not exceed the allowable ceiling interest rate of 10.5 percent/year ruled by SBV.

However, banks are racing to offer promotion programmes, bringing the deposit rate up to 12-13 percent per year.
Banks are applying the sole deposit rate for all terms. Therefore all depositors chose short term deposits of from one month to three months. So, banks' medium and long term capital is decreasing. According to SBV's HCM City branch, total short term deposits of the city's banks accounted for over 70 percent of total deposits.

In 2009, total deposit balances at banks increased nearly 27 percent while capital supply of banks to the economy posted a rise of nearly 38 percent.

Source: http://www.intellasia.net/news/articles/finance/111286823.shtml