Wednesday, May 29, 2024 6:31:52 AM - Markets open
VN-INDEX 1,281.73 +14.05/+1.11%
HNX-INDEX 245.58 +2.75/+1.13%
UPCOM-INDEX 95.62 +0.75/+0.79%
Banks given advantages to CASA ratio
Vietnam News - 3/20/2024 3:01:34 PM
 (0 ratings. You must sign in to rate.)
 Banks have been given favourable conditions to increase CASA (Current Account Savings Account), or non-term deposits, as interest rates of term deposits have continued to decrease.
CASA is a demand deposit and has very low interest rates. Last year when interest rates for term deposits were high, many customers transferred their idle money in their bank accounts to term deposits to enjoy higher interest rates. Now, due to the low interest rates of term deposits, they do not pay much attention to the transfer, making the CASA ratio in commercial banks higher.
For banks, attracting a high proportion of non-term deposits is very important, because it creates a cheap source of capital. Normally, the interest rates of non-term deposits are much lower than term deposits, being only 0.1-0.3 per cent per year.
According to experts, the high CASA ratio will create a premise for banks to improve their net interest margin (NIM) while keeping the lending rates at competitive levels in the market.
Banks, therefore, are promoting to lure CASA to benefit from the low-cost capital source.
Top 3 CASA ratios last year were MB Bank, Techcombank and Vietcombank and the ranking is forecast to remain unchanged this year. Techcombank’s CASA surged by 37 per cent compared to the beginning of this year, from VNĐ132.5 trillion to VNĐ181.5 trillion, while MB Bank's CASA also increases by 16.4 per cent, from VNĐ180.2 trillion to VNĐ228.1 trillion.
According to banking expert Nguyễn Trí Hiếu, as CASA is characterised by instability because customers can withdraw their non-term deposits at any time, banks, especially small-sized ones, must focus on improving their services to lure non-term deposits so as to increase their CASA rate.
"If a bank does not focus on developing digital services to enable it to connect with more ecosystems to serve the diverse needs of customers, they will either automatically choose another bank with better services, or withdraw their money to invest in other channels. At that time, the bank’s CASA will decline,” Hiếu said. — VNS
Read original article here
Newer News
27/05 Experts predict deposit interest rates to rise 1 percentage point in H2
22/05 Finance ministry works with S&P on sovereign credit rating
13/05 Central bank's bid to stabilise gold market hits snag
08/05 Proposal of compulsory non-cash payment for gold transactions controversy
08/05 Three bidders win gold auction at high price
06/05 Bank deposits decline for first time in over two years
06/05 SJC gold price hits all-time high
24/04 Two bidders win the first gold auction this year
24/04 HCM City seeks to draw remittances in infrastructure
24/04 HCM City could issue bonds for overseas Vietnamese to fund infrastructure: conference
Older News
18/03 Việt Nam to revise gold market regulations: amendments to Decree 24/2012/NĐ-CP underway
18/03 Man owes bank nearly VNĐ9 billion in credit card's interest after 11 years
15/03 PM urges further rate cuts, improved credit access to remove obstacles, promote growth
14/03 Insurance premium revenue rebounds in the first two months
14/03 Foreign exchange rate cools after central bank’s intervention
14/03 Lukewarm reception for VNĐ120 trillion credit package
14/03 Banks remain reluctant in disclosing interest rates
14/03 Ministry of Finance to scrutinise insurance sales via credit institutions and foreign bank branches
14/03 Gold drops as traders cash in earlier gains
13/03 Corporate bond market quiet in February
Newsletter Signup
Top Stories
VN adds over 110,000 new securities accounts in April, bringing total to 7.7 million
Cautious rise amid low supply and cash flow, investors advised to monitor resistance area
Interest rates to rise but not have major impact on stock market: economist
Businesses concerned about rising exchange rate pressure
Gold bar auction to be resumed after 11 years of suspension
Market Update
Last updated at 3:05:02 PM
VN-INDEX 1,281.73 +14.05/+1.11%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.