What is bank capital mobilization? Latest deposit interest rate 2025

1. What is bank capital mobilization?

Mobilizing bank capital is the process by which banks attract money from individuals and organizations to serve their financial purposes such as lending or investing. This is a form of banking that "borrows" money from customers to increase financial capacity and ensure business operations continue continuously and effectively.

Bank capital mobilization activities are very popular and have become an indispensable part of the operations of large financial institutions today. The goal of mobilizing capital is not only to help the bank maintain a stable cash flow and meet customers' loan needs, but also to expand investment opportunities and create profits from the interest rate difference between mobilized capital and loans. Thereby, the bank builds a solid financial foundation for long-term development strategies.

2. Forms of capital mobilization

To maintain and expand operations, banks often apply many different capital mobilization methods as follows:

2.1. Mobilize capital from customer deposits

Customer deposits are an important and stable source of capital for banks, mobilized through products and services. Deposit types have differences in terms of terms and flexibility. Specifically:

• Term deposit: This is a type of deposit with a specific commitment period from the customer, usually with a higher interest rate than demand deposits. This type of deposit helps banks have a stable source of capital to serve long-term loans. Banks often attract customers by offering flexible interest rates and deposit terms.
• Demand deposits: A deposit that customers can withdraw at any time. This type of deposit helps banks maintain flexibility in meeting customers' payment needs, but the interest rate is lower than term deposits. At the same time, banks can still rely on the stability of balances to carry out lending and investment activities.

2.2. Raise capital by issuing valuable papers

Banks can also raise capital through the issuance of financial instruments such as bonds, certificates of deposit and promissory notes. These instruments are issued to the public or privately to specific subjects, helping banks attract long-term capital.

• Left phoops: Bonds are a way banks borrow long-term capital from investors. When issuing bonds, the bank commits to return the principal amount with a predetermined or variable interest rate after a certain period of time. This is often a financial source used for large projects or long-term development strategies of the bank. Bond terms can last from several years to decades, depending on the type of bond and the purpose of capital use.
• Certificate of deposit: A certificate of deposit is a document that confirms that a customer has deposited a sum of money with a bank for a specific period of time. Unlike regular deposits, certificates of deposit often have higher interest rates, making them attractive to depositors. For banks, this is a safe form of capital mobilization, helping to maintain stability in capital sources and usually cannot be withdrawn before maturity.
• Promissory note: A promissory note is a type of short-term valuable paper that a bank issues to mobilize capital in a short period of time. Promissory notes are often used to meet quick liquidity needs, with maturities ranging from a few months to less than a year. The bank can be flexible in determining the interest rate and term of the promissory note to suit its financial strategy.

2.3. Mobilize by borrowing capital from other credit institutions

In addition to direct mobilization from customers, banks can also borrow from other credit institutions to increase working capital:

• State Bank: Commercial banks can borrow capital from the State Bank in case of liquidity shortage or to implement credit policies to support the economy. The main form of loan is rediscount, in which commercial banks will use commercial papers to borrow capital from the State Bank.
• International financial institutions: Banks can mobilize capital from international financial institutionsinternational organizations such as IFC, ADB, IDA or IBRD. CThese loans often have reasonable interest rates and are provided within the framework of development projects.
• State Treasury: Some banks can borrow capital from the State Treasury to increase financial resources for national activities or serve social policy development goals.
• Commercial banks and other partner banks: Borrowing capital from commercial banks or other financial partners is also an effective way for banks to supplement capital for their business activities and solve short-term liquidity problems.

2.4. Mobilize capital by increasing charter capital and issuing shares

One of the long-term methods to help banks strengthen their financial capacity and develop strongly is to increase charter capital through issuing shares. The bank can issue additional shares to the public or to strategic investors, thereby mobilizing the necessary capital for development activities. 

Increasing charter capital helps the bank have a solid financial foundation to serve large investment plans, while increasing liquidity and minimizing risks. HThis form also helps banks improve their reputation in the financial market. This is a long-term development strategy, helping the bank maintain stability and sustainable development in a competitive financial environment.

3. Factors affecting the bank's decision to choose a form of capital mobilization

The decision to mobilize capital for banks is not a simple and easy process. To choose a form of capital mobilization that ensures efficiency and effectiveness sustainability of attracted capital, banks often have to consider the following factors:

Bank capital needs

Each bank will have different capital needs, depending on financial goals, development plans and investment projects. The bank will choose the appropriate form of capital mobilization based on the requirements of the amount of capital to be mobilized, the time to use the capital and the costs to be paid.

For example, if banks need long-term capital to serve strategic investment projects, they can choose to issue bonds or mobilize from large financial institutions. Meanwhile, if capital needs are short-term or flexible, forms of mobilization such as borrowing through the open market or mobilizing through deposit products may be more suitable.

Market conditions

Market interest rates, especially interest rates of popular capital mobilization channels such as deposits and bonds, will affect the bank's ability to attract capital. If market interest rates are high, banks may have difficulty mobilizing capital from these sources and must evaluate whether to adjust interest rates to retain investors.

In addition, the State Bank's operating policies on currency as well as regulations on equity and capital adequacy ratios can directly impact capital mobilization decisions.

Capital mobilization costs

Each form of capital mobilization will have different costs. Banks will have to consider the balance between mobilization costs and benefits from using mobilized capital. Low-cost forms of mobilization such as mobilizing capital from savings deposits and borrowing capital from the State Bank will be options.n priority in the context of an unstable economic environment. Meanwhile, the forms have cHigher costs such as issuing stocks, bonds or borrowing capital from other commercial banks can be considered when the bank needs large capital in a short time.

Bank's reputation and capacity

Banks with reputation and strong financial capacity will often have more options in raising capital. A bank with a strong brand will easily attract capital from large investors or customers, because they trust in the bank's solvency and financial management capabilities. In addition, banks with good financial capacity can also access capital mobilization channels such as issuing stocks, bonds or borrowing credit from international financial institutions with more preferential conditions.

4. Bank capital mobilization interest rate

Bank capital mobilization interest rates are influenced by many different factors, including:

• Financial situation of the bank: Banks with a stable financial situation and good liquidity are often able to mobilize capital at lower interest rates, because they are less risky and have the ability to pay interest to customers regularly. 
• Forms of capital mobilization: Each form such as savings, issuing certificates of deposit or bank bonds will have different interest rates, built based on the needs and strategies of the bank.
• Bank's reputation and capacity: Large, reputable banks with strong brands can mobilize capital at low interest rates while still attracting large customer participation, while small banks may have to offer higher interest rates to attract customers.

For customers, this interest rate is the most important factor when deciding to deposit money in the bank. Currently, interest rates for mobilizing capital from customers through deposits range from about 0.5% to 5%/year, depending on the form and term of the deposit.

Note: 

• The above interest rates are updated in December 2024 and are for reference only.
• Contact hotline or visit here SeABank Learn more about interest rates at SeABank.

5. SeABank has attractive deposit mobilization interest rates and many incentives special

SeABank is one of the most popular banks in Vietnam with a high reputation, always at the forefront of providing convenient and optimal financial solutions for customers. Compared to the average interest rate on the market, the deposit interest rate at SeABank is considered very competitive and flexible according to the deposit term, from short-term to long-term, helping customers maximize investment profits from their savings.

With a nationwide branch network and excellent customer service, SeABank offers a wide variety of products and services to individual and corporate customers. There are many special savings products such as: Savings Build the Future and Savings Nurture Dreams, helping individual customers choose appropriate financial solutions. The bank also offers many types of corporate deposits with unique incentives such as Margin Deposits, Flexible Principal Deposits or Periodic Interest Deposits...

Besides, with its leading position in technology application and digital transformation in banking and finance operations, SeABank also provides Online savings service through SeABank's online platforms such as SeANet/SeAMobile not only helps customers save time and procedures but also ensures absolute safety and security. opposite to. Customers can open and close savings contracts online easily without going to the transaction counter. This is one of the special utilities that helps improve customer experience when depositing money at SeABank.

Thus, mobilizing bank capital is an important strategy for financial institutions to develop sustainably. SeABank not only offers attractive interest rates but also brings many utilities and profit optimization to customers. Contact Hotline or visit SeABank's nearest transaction counters for advice on savings products and deposit types today!