Central bank asks credit institutions to reduce interest rates

Hanoi - The State Bank of Vietnam (SBV) has sent a document to credit institutions and branches of foreign banks and SBV in provinces and centrally-run cities regarding the reduction of interest rates.

The document clearly stated that in accordance with the Government and the Prime Minister’s directives, and based on the recent market and interest rate movements, the SBV requested all credit institutions and branches of foreign banks to strictly follow its regulations on deposit rates. They must publicly post deposit rates at the designated deposit-taking locations as prescribed by the SBV and continue with measures to reduce deposit rates, thus creating conditions to lower lending rates for clients.

They were urged to persist in cost-saving efforts to strive for further reductions in lending rates, which aims to support firms in restoring production and trade, and propelling economic growth, as directed by the National Assembly and the Government.

They were also assigned to raise public awareness of the efforts on the mass media so that customers are well informed and have access to the support policy.

The SBV branches in provinces and cities must closely monitor interest rate movements in their respective areas. By doing so, they could propose appropriate solutions to enforce the SBV’s policy.

The State Bank of Vietnam (SBV) has cut regulatory interest rates for four consecutive times since the beginning of this year, in the context that world interest rates continue to rise and stay at a high level.