The banking system's capital mobilization has accelerated, surpassing credit growth, according to data shared by Deputy Minister of Finance Tran Quoc Phuong at the government's regular august meeting on the afternoon of 3/9.
This development indicates an improvement in the short-term liquidity of the banking system. By 22/8, capital mobilization in Vietnam dong had increased by 8,77% since the beginning of the year, exceeding the 8,38% growth in outstanding credit.
This marks a reversal from the trend observed in late June. Data from the State Bank showed that by the end of the second Quarter, capital mobilization by credit institutions had only risen by over 5% compared to the year's start, falling short of the 7,4% credit growth.
Consequently, in less than two months, the banking system's capital mobilization accelerated to surpass credit growth.
This acceleration occurred as banks intensified efforts to attract capital, leading to increased interest rates across various channels, including traditional deposits, certificates of deposit, and bonds.
![]() |
Transactions at a commercial bank. Photo: Giang Huy |
Savings interest rates at many banks exceeded 9% annually, even for deposits of a few hundred million dong. The competition for capital intensified due to high demand within the system. By late June, deposit mobilization varied significantly among banks, with some experiencing high growth while others saw negative growth.
At a recent conference, Pham Nhu Anh, CEO of Military Bank (MB), noted that year-end liquidity improvement depends on the speed of public investment disbursement.
If public investment disbursement accelerates in the final months of the year, the resulting cash flow back into the economy will support system liquidity. Conversely, continued slow progress will maintain significant pressure on monetary policy and bank capital mobilization.
Anh predicted that interest rates are likely to remain stable until the year's end. This stability, he explained, primarily stems from the State Bank's operational guidance rather than an abundance of system liquidity.
Quynh Trang
