“Central Bank Meets with Commercial Banks to Discuss Interest Rates”

On the afternoon of August 4, the State Bank of Vietnam (SBV) held a conference to deploy solutions to stabilize deposit interest rates and reduce lending rates. The meeting was chaired by SBV Deputy Governor Pham Thanh Ha, with the participation of general directors, deputy general directors, and representatives of commercial banks.

According to Deputy Governor Pham Thanh Ha, at the beginning of the year (February 2025), the SBV also held a meeting to direct commercial banks to stabilize deposit interest rates and strive to reduce lending rates.

In the first six months, the economy grew positively, and inflation was controlled, averaging 3.27% for the period, in line with the National Assembly’s target. The monetary and foreign exchange markets remained stable. Credit grew positively, reaching 9.8% at the end of July compared to the end of 2024 and 19.75% compared to the same period last year – the highest growth rate in recent years. Interest rates remained stable, and lending rates decreased compared to the end of 2024. Credit institutions (CIs) have publicly and transparently disclosed information about interest rates.

The Deputy Governor stated that the government is particularly concerned about interest rate developments. The government has also assigned the SBV the task of stabilizing deposit interest rates and reducing lending rates.

At the conference, Mr. Pham Chi Quang, Director of the Monetary Policy Department, said that in the past time, the SBV has operated the monetary policy stably, supported liquidity for the banking system, and directed banks to cut costs to have room to reduce lending rates, in accordance with the direction of the Government and the Prime Minister. The average new deposit interest rate was 4.18%/year, basically stable compared to 2024. The average lending rate decreased to 6.53%/year, a decrease of 0.4 percentage points compared to the end of 2024.

Regarding credit, Mr. Quang said that the SBV continues to operate the credit policy to support economic growth, with a GDP growth target of 8% and above while controlling inflation. On July 31, the SBV announced an adjustment to increase the credit growth target for credit institutions; directed to promote credit in the production and business sectors and priority areas; and strictly controlled credit in risky areas, including real estate. At the same time, credit institutions simplified procedures to facilitate people’s access to loans and business capital.

In the context of exchange rate pressure, the SBV has also flexibly managed the exchange rate, absorbing shocks from the international market, contributing to stabilizing the foreign exchange market.

In the coming time, the SBV requires credit institutions to implement the direction of the Government, the Prime Minister, and the SBV to stabilize deposit interest rates; continue to cut operating costs, promote digital transformation, and be ready to share a part of their profits to reduce lending rates to support people and businesses in accessing bank credit, thereby promoting economic development. In addition, credit institutions should ensure safe and effective credit growth, directing credit to production and business sectors, priority areas, and growth drivers; and strictly control credit in potential risk areas to ensure safety and efficiency.

The SBV will continue to closely monitor deposit and lending interest rate movements and the publication of lending interest rates on credit institutions’ websites; strengthen inspection, supervision, and monitoring of the implementation of the Government, the Prime Minister, and the SBV’s policies on deposit and lending interest rates. In terms of management, the SBV will continue to closely monitor domestic and international market developments and be ready to support liquidity to enable credit institutions to provide credit to the economy and promptly take appropriate monetary policy management measures.