09:29 | 01/06/2015 Finance - Banking
Deposit interest rates are set to rise as growth rate of deposits has been lower than that of credit, according to a report from the National Financial Supervisory Commission (NFSC).
In the latest report on macro-economic situations for May and the first five months of 2015 released this week, NFSC said that total deposits rose 0.98% in the first quarter, in which deposits in the Vietnamese dong rose 1.9% and deposits in foreign currencies fell 4.9%.
Total outstanding loans, meanwhile, increased 1.7%, in which outstanding loans in dong climbed 2.4% and outstanding loans in foreign currencies dropped 0.9%.
As a result, the loan to deposit ratio (LDR) rose to 84% from 83% in December 2014, of which LDR in foreign currencies climbed to 87% from 83.4% at the end of 2014.
Under the report, NFSC also said that it was difficult for the Government to mobilise capital from selling Government bonds, adding that the G bond winning rate was 64.5% to date this year, completing only 31.7% of the year's issuance plan.
According to the Ministry of Finance (MoF), this year it plans to issue VND250 trillion (US$11.52 billion) government bonds, including VND180 trillion (US$8.29 billion) 5-year bonds, VND50 trillion (US$2.3 billion) 10-year bonds and VND20 trillion (US$921.65 million) 15-year bonds.
Among VND69.51 trillion ($3.2 billion) bonds issued in 4 months, the value of 5-year, 10-year and 15-year bonds were at VND42.15 trillion (US$1.94 billion), VND11.17 trillion (US$514.74 million) and VND16.18 trillion (US$745.62 million) respectively.
Deputy Minister of Finance Vu Thi Mai said that MoF would closely monitor the market developments to have appropriate measures in place to ensure the successful mobilisation of VND250 trillion, but did not confirm the possibility of adjusting bond terms to match the market demand.