Liquidity of banking system forecast to be abundant in Q4 2023

Your browser does not support the audio element. According to credit institutions, the liquidity of the banking system in the third quarter of  二0 二 三 continued to maintain a good and improved status.

 

Headquarters of the State Bank of Vietnam (SBV). The SBV’s latest survey shows credit institutions expect customer demand for banking services in  二0 二 三 to increase at a slower rate compared to  二0 二 二. — Photo sbv.gov.vn

HÀ NỘI — Credit institutions expect liquidity of the banking system will be abundant in the fourth quarter of  二0 二 三, and deposit and lending interest rates will continue to decrease.

The forecast was based on a survey of business trends among credit institutions in the fourth quarter of  二0 二 三 released recently by the State Bank of Vietnam’s Department of Forecasting and Statistics.

According to credit institutions, the liquidity of the banking system in the third quarter of  二0 二 三 continued to maintain a good and improved status compared to the second quarter of  二0 二 三. Credit institutions predict that the liquidity situation will continue to be abundant in the fourth quarter of  二0 二 三 and for the whole year  二0 二 三 compared to  二0 二 二.

Credit institutions also expect the average deposit and lending interest rates in the banking system to continue to decrease by 0. 二 六-0. 三 五 percentage points in the fourth quarter of  二0 二 三.

As expected in the June  二0 二 三 survey, at this survey period, credit institutions said they continued to adjust and reduce the average price of their products and services. In general, compared to  二0 二 二, the average price of products and services in  二0 二 三 is forecast to decrease significantly, but may increase slightly in  二0 二 四 because service fees are expected to slightly increase while marginal interest rates are expected to continually decline.

The survey also showed capital mobilisation across the entire banking system is expected to increase by an average of  三. 二 per cent in the fourth quarter of  二0 二 三 and increase by  八. 七 per cent in the whole year, adjusted down compared to the  一0. 六 per cent expectation recorded in the previous survey. Outstanding loans of the banking system are expected to increase by  四. 六 per cent in the fourth quarter of  二0 二 三 and increase by  一 二. 三 per cent in  二0 二 三, adjusted down by 0. 二 percentage points compared to the  一 二. 五 per cent forecast in the previous survey.

According to the survey, credit institutions predict that customer demand for banking services may further improve in the fourth quarter of  二0 二 三 due to expectations of a more positive economic situation, and a gradual rebound of manufacturing and export sectors, in which loan demand is expected to improve more than deposit and payment demand.

For the whole of  二0 二 三, customer demand for banking services is forecast to increase at a slower rate compared to  二0 二 二. — VNS

Tags banking