At a time when depositors’ demand for withdrawing their savings is high, many banks are now seeking ways to attract dong deposit in order to solve the liquidity problem.
Banks now face a dong liquidity shortage since depositors have drawn money for clearing debts, paying wages, or granting Tet bonuses, the Saigon Times Online reported.
Experts said some small banks have thus offered high interest rates for deposits in gold and foreign currencies in an effort to ease the shortage.
Banks will mortgage the mobilized gold, or exchange the foreign currencies, for the dong in the interbank market to solve the liquidity problem, they said.
Thus, the interest rate for gold deposits has steadily risen over the last three months. From the low rate of less than 1 percent a year last September, the rate recorded at most banks is now more than 2 percent a year.
Specifically, Saigon Commercial Bank (SCB), the first merged bank to be created under the State Bank of Vietnam’s restructuring plan, offers a rate as high as 3.5 percent a year.
High deposit interest rates can also be observed in foreign currencies. The rates for the euro, US, Australian, and Canadian dollars have been increased to 4 percent a year at most banks.
Meanwhile, some institutions have even breached the deposit interest rate cap of 14 percent set by the central bank, in order to attract more savings.
An executive of a food business revealed that a bank has offered an interest rate of more than 14 percent for a one-month deposit worth VND500 million and above.
A salesperson of a major bank based in District 5 said most banks now have promotional campaigns to keep depositors from withdrawing their savings, while attracting more customers.
Besides offering promotions, many banks have chosen to offer better customer care services to keep depositors.
An employee of Maritime Bank said that customers wishing to open saving accounts at his bank will not need to physically come to the bank, as its employees will come to customers’ home to complete all necessary procedures.
Meanwhile, Oriental Commercial Bank said its CEO will personally visit major depositors to hand over Tet gifts to them, as well as invite them to a New Year Eve’s party with the bank.
