BIDV is a leading bank that is pioneering in disclosing lending interest rates
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The State Bank of Vietnam representative said: Implementing the direction of the Prime Minister in Notification 527/TB-VPCP dated 18/12/2023, the State Bank of Vietnam (SBV) has resolutely directed credit institutions to publish lending interest rates to create favorable conditions for people and businesses to access bank credit sources.
Specifically, right after the Conference on Solutions to Remove Difficulties in Credit Growth for Production and Business, Promote Economic Growth and Stability at the macro level at the end of 2023, the SBV issued Official Letter No. 9759/NHNN-TD dated 21/12/2023 on strengthening credit activities in the last month of 2023 and early 2024, which requires credit institutions to publish the average lending interest rates on the bank’s website.
Starting from the beginning of 2024, in Directive 01/CT-NHNN dated 15/1/2024 on organizing the implementation of the key tasks of the banking industry in 2024, the SBV has requested credit institutions to proactively disclose publicly on the bank’s electronic information page (website) the average lending interest rates; the difference between the average deposit and lending interest rates; interest rates for credit programs, preferential credit programs, and other types of lending interest rates (if any).
The SBV is urging and requesting credit institutions to continue implementing the above-mentioned lending interest rates disclosure and to report on the implementation to the SBV.
In line with the Government’s direction and the SBV’s guidance, many banks have actively implemented and disclosed information about the average lending interest rates, the difference between average deposit and lending interest rates, as well as information about lending interest rates for credit packages, credit programs, products, base lending interest rates, and reference lending interest rates on the bank’s website.
Specifically, these banks include: A Chau Bank, Tien Phong Bank, Vietnam Post and Telecommunications Group (VNPT), Bac A Bank, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), Hong Leong Bank, Agricultural Bank of China, Maybank Hanoi and Ho Chi Minh City, First Commercial Bank branches in Hanoi and Ho Chi Minh City, Maybank, Lotte finance… Recently, BIDV, a leading bank in lending market share, announced the average lending interest rates in March 2024. This is one of the first banks to publicly disclose lending interest rates in accordance with the direction of the Prime Minister and the State Bank of Vietnam (SBV). Accordingly, the average lending interest rate at BIDV is 6.49%/year. The difference between the average lending interest rate and the average deposit interest rate is 3.12%/year.
In the future, the SBV affirms that it will continue to monitor and urge banks to disclose information about lending interest rates in order to provide more information for customers to refer to when accessing borrowing capital.
At the Conference on the Implementation of Monetary Policy Management Tasks in 2024, which focuses on removing difficulties for production and business, promoting growth and stability of the macro economy, the Prime Minister emphasized the requirement to enhance transparency in credit activities, especially noting that credit institutions must publicly disclose the average lending interest rates.
Implementing the Government’s policy direction, the SBV has requested credit institutions to send links to the section publicly disclosing various interest rates on the State Bank of Vietnam’s website before April 1st. If there are changes to the links, they must be updated within 2 working days.
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Prior to that, at the online conference for the entire banking industry on promoting bank credit in 2024, in response to the hesitant reaction of credit institutions regarding disclosure, Deputy Governor Dao Minh Tu affirmed the viewpoint: If credit institutions do not disclose the average lending interest rates, it will not only be evaluated by the SBV but also by the economy and businesses. Or if banks only disclose the average short-term lending interest rates because these rates are low, it is also unfair. “This is the average interest rate, not the interest rate for each target, each enterprise or each type, so there is nothing wrong with it. Therefore, when lending and mobilizing capital, interest rates must be disclosed, and this disclosure is not difficult,” emphasized the SBV leader. |
Huy Thang
