Vietnam central bank orders more lending rate cuts
Thursday, August 17, 2023, 10:50 GMT+7
The State Bank of Vietnam (SBV) has asked local commercial banks and branches of foreign lenders to further lower lending rates by a minimum of 1.5 percentage points per year to support enterprises and residents in the resumption and development of production and business activities.
The central bank stressed in its statement that credit institutions should continue employing drastic measures to cut lending rates for both new and outstanding loans.
The SBV required commercial banks to report their lending rate cutting plans for this year before August 25 and the results of the implementation of these schemes prior to January 8, 2024.
Since early this year, the central bank has cut policy interest rates four times with an overall decline of two percentage points.
It has also requested that banks reduce costs in a bid to lower lending rates.
Lending rates have fallen 1.5-2 percentage points since the end of last year.
The Vietnamese government had earlier required the SBV to take measures to reduce lending interest by a minimum of 1.5 percentage points per year.
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