According to FE Credit, the average lending interest rate in February 2024 is 23.4% per annum.
FE Credit is the first financial company to publicly announce the average lending interest rate following the Prime Minister and the State Bank of Vietnam’s guidance. It is also one of the first credit institutions to publish this information alongside some banks.
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In Official Dispatch No. 18/CD-TTg dated March 5, 2024, regarding the credit growth management for 2024, Prime Minister Pham Minh Chinh requested the State Bank of Vietnam to direct credit institutions to publicly announce the average lending interest rate. This will facilitate individuals and businesses in accessing credit and choosing a bank for borrowing purposes.
Prior to this, the State Bank of Vietnam issued Directive No. 01 on the implementation of tasks for 2024, which includes directing credit institutions to publicly announce and take responsibility for the average lending interest rate of each credit institution and the difference between deposit interest rates and average lending interest rates on their respective websites.
At a recent online conference on enhancing bank credit in 2024, Deputy Head of the Monetary Policy Department Pham Chi Quang also stated that the State Bank of Vietnam has made a request for listed banks to disclose the average lending interest rate and publish it on their websites. The banks were requested to report on the implementation by February 23 and to specify any difficulties or obstacles for management authorities to consider and resolve accordingly.
In the near future, after synthesizing the opinions of credit institutions, the State Bank of Vietnam plans to create a website for credit institutions to submit the link for publishing the average lending interest rate, linked to the State Bank of Vietnam’s website. “To avoid misunderstanding when announcing the average lending interest rate, the State Bank of Vietnam does not restrict credit institutions from disclosing detailed information about customer groups or customer classifications. That is the authority of each credit institution,” Mr. Pham Chi Quang said at the meeting.
Deputy Governor Dao Minh Tu also stated that public disclosure is the correct directive of the Government and the banking sector must adhere to it, as it is a management discipline. If credit institutions do not disclose the average lending interest rate, it will not only be evaluated by the State Bank of Vietnam, but also by the economy and businesses. Alternatively, if banks only disclose short-term average lending interest rates because they are low, it is also unfair.
“This is the average lending interest rate, not the interest rate for each target, each business, or each type of business, so there is no violation. Therefore, responsibility in lending and mobilization requires the disclosure of interest rates. It is recommended that banks implement this well. We strive for fairness and objectivity in competition, and all banks must strive for this. There is no difficulty in disclosing this information,” emphasized the leadership of the State Bank of Vietnam.
