HÀ NỘI — More than 20 banks in Việt Nam have launched preferential lending programmes for businesses, while average rates on new loans fell by 0.2–0.5 percentage points in late October, the State Bank of Vietnam (SBV) said on Wednesday.
The move follows Government directives to lower borrowing costs and support economic growth amid rising demand for capital to fuel growth.
At the Government’s regular press briefing on Wednesday, Deputy Governor Phạm Thanh Hà said commercial banks had cut listed deposit rates by 0.5 percentage points per year for terms of six months or longer.
The cuts mark an initial result of measures introduced by the central bank to ease interest rate pressures.
The economy’s growing demand for capital, coupled with global economic uncertainties and interest rate increases by several central banks, has put pressure on domestic interest rates, Hà said.
In October, the SBV directed credit institutions to cut costs, share profits and take stronger action to reduce lending rates.
Banks were asked to lower listed and new deposit rates by 0.5 percentage points per year for terms of six months or longer and reduce lending rates by 1.5–2 percentage points for production, business activities and priority sectors.
The measures have begun to take effect.
State-owned commercial banks and wholly foreign-owned banks have generally cut listed deposit rates by 0.5 percentage points, while joint-stock commercial banks have reduced rates by 0.5-0.7 percentage points.
Average rates on new deposits fell by around 0.4 percentage points in late October compared with mid-month, according to the SBV.
Average lending rates on new loans also declined by 0.2-0.5 percentage points over the same period.
More than 20 banks have announced preferential credit programmes for production, business activities and priority sectors, offering lending rate cuts of 1.5-2 percentage points.
The central bank is also providing liquidity support to credit institutions through open market operations, refinancing and short-term foreign currency-Vietnamese đồng swaps.
On November 3, the SBV announced a six-month foreign currency-VNĐ swap facility for credit institutions.
The measure is expected to provide banks with more stable VNĐ funding, helping ease lending rate pressures and support economic growth.
Hà said the central bank would continue to monitor domestic and global economic developments and manage monetary policy flexibly to control inflation, maintain macroeconomic stability and support sustainable growth.
It would also provide timely liquidity support, manage the exchange rate in line with market conditions and direct credit towards production, business activities and priority sectors.
Banks would be required to maintain safe and efficient credit growth, expand digital lending processes to improve access to capital, and closely control lending to riskier sectors.
At the briefing, Chairman of the Government Office Đoàn Xuân Phong said interest rate cuts were among the key issues recently highlighted by the Prime Minister.
He called on the SBV to step up inspections and supervision to ensure banks implemented the cuts in practice rather than merely announcing them.
The reductions in both deposit rates and lending rates must be closely monitored to ensure they deliver tangible results, he said. — VNS
