As usual, there is expected to be a significant increase in the demand for loans from businesses and residents in Da Nang over the remaining months of this year.

In an attempt to meet that increasing demand, in recent days local banks have increased their interest rates on term deposits in order to mobilise capital.  In addition, many of them have launched promotion programmes in order to attract more local depositors.

The slight rise in deposit interest rates should be seen as a good sign for depositors who now feel more secure about keeping their savings in banks which are considered to be safe and reliable.  In contrast, those who want to access bank loans are now worried that this will cause an increase in lending interest rates.

Banking transactions at a local commercial bank

According to the Director of the city’s branch of the State Bank of Viet Nam (SBV), Mr Vo Minh, the country’s macro-economy has shown positive signs of recovery since the beginning of the year.  Thanks to this, a stable credit growth has been seen at local commercial banks.  Given the increasing demand for loans, these credit organisations have raised their deposit interest rates in order to increase their capital.

He also remarked that many local commercial banks have focused on increasing interest rates on long-term deposits.  Meanwhile, the interest rates on short-term deposits are still under the current cap set by the SBV.