VCSC Daily - September deposit and credit see negative growth
September deposit growth declined 1.07% MoM. Dong interest rates dropping sharply following banks compliance with the deposit rate cap of 14% was the primary reason for the decline in deposits. In September, the dong interest rates applicable to VIP clients fell to 14%pa from 18-19%pa. Lower dong deposit rate have encouraged domestic residents to shift from holding dong to gold and foreign currencies.