A financial report analysis of 24 Vietnamese banks shows that the average Current and Savings Account (CASA) ratio of the banks rose from 17 percent in 2020 to 19.4 percent in late 2021.
A client conducts a bank transaction at Sacombank. (Photo: dangcongsan.vn)
Hanoi (VNS/VNA) - A financial report analysis of 24 Vietnamesebanks shows that the average Current and Savings Account (CASA) ratio of thebanks rose from 17 percent in 2020 to 19.4 percent in late 2021.
Techcombank led the field with the highest CASA ratio of 50.5 percent,equivalent to total non-term deposits of 158.9 trillion VND (6.99 billion USD).
MB came in second with a climb of 47.3 percentage points, to about 48.7 percent.
MSB surpassed Vietcombank to secure third with around 37.7 percent.
Kienlongbank was among the banks with the fastest-growing CASA, increasing 5.8times to 15.5 percent.
BacABank followed suit with a roughly twofold increase, to 3.3 percent lastyear.
The uplift in CASA could also be observed in the other banks, including VIBwith an increase of 4.1 percentage points and TPB with 3.9 points.
As non-term deposits incur almost no cost of capital, banks with higher CASAare more likely to enjoy higher net interest income.
Accordingly, non-term deposits are taking up an increasing portion of banks’capital structure.
While some banks managed to raise their non-term deposits to nearly half oftotal deposits, others still kept it below 20 percent.
Experts believe a low CASA ratio indicates that some banks are still clingingto wholesale banking and have yet to expand to other market segments.
However, as CASAs give depositors immediate access to their deposits, it alsocreates uncertainty regarding when money is withdrawn.
Consequently, a high CASA ratio comes with a high risk of deposit withdrawalduring times of volatile interest rates.
The Government has recently called for the reconsideration of a directive thatrequires banks to bring down their ratio of short-term capital for medium- andlong-term loans.
That means the ratio is not going to be adjusted down as planned in the shortterm.
Banks with a high CASA ratio are expected to benefit greatly from thereconsideration./.
Many banks have increased their interest rates to attract more depositors after getting a credit growth quota expansion from the State Bank of Vietnam (SBV).
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A client conducts a bank transaction at Sacombank. (Photo: dangcongsan.vn) 
