At the meeting, the State Bank leader instructed credit institutions to strictly follow the Government’s, Prime Minister’s, and State Bank’s directives on maintaining stability in deposit interest rates. Credit institutions were also encouraged to continue reducing operating expenses, enhance digital transformation, and be prepared to share a portion of their profits to reduce lending rates. These measures aim to support individuals and businesses in accessing bank credit and promote economic development.
Emphasizing safe and efficient credit growth, the State Bank leader directed credit to be channeled towards production and business activities, priority sectors, and growth drivers. Meanwhile, credit to potential risk areas should be tightly controlled to ensure safety and efficiency.
The State Bank of Vietnam will continue to closely monitor deposit and lending interest rate movements and the disclosure of lending interest rates on the websites of credit institutions. Additionally, they will strengthen inspection, supervision, and monitoring of the implementation of the Government’s, Prime Minister’s, and State Bank’s directives on deposit and lending interest rates.
In terms of governance, the State Bank will closely follow domestic and international market developments. They are prepared to provide liquidity support to enable credit institutions to supply credit to the economy and will promptly implement appropriate monetary policy measures.
According to statistics from the State Bank, as of the end of July, deposit interest rates in VND at domestic commercial banks remained low. Specifically, interest rates for non-term and under 1-month term deposits ranged from 0.1% to 0.2% per annum. For terms of 1 month to under 6 months, interest rates ranged from 3.2% to 4% per annum, while deposits of 6 months to 12 months earned interest rates from 4.5% to 5.5% per annum.
For long-term deposits over 12 months to 24 months, interest rates were maintained at 4.8% to 6.1% per annum, and deposits over 24 months earned 6.8% to 7.1% per annum. USD deposit interest rates remained at 0% per annum for both individuals and organizations.
In terms of lending, the average interest rate for VND loans at commercial banks for new loans was around 6.4% per annum. Notably, the average interest rate for short-term loans in priority areas, including agriculture, export, supporting industries, small and medium-sized enterprises, and high-tech industries, has dropped to around 3.9% per annum, which is lower than the ceiling set by the State Bank of Vietnam at 4% per annum.
For USD lending, the average interest rate ranged from 4.1% to 5% per annum.
“Unlocking Economic Growth: Vice Premier Advocates for Higher Credit Limits for Well-Performing Banks.”
“Regarding the credit growth cap, or ‘room’, as Deputy Prime Minister Ho Duc Phoc stated, this tool remains a vital lever in the short term for managing the economy. Adjusting this credit room is essential in the current context. Well-performing banks should be given more room to extend credit and boost the economy with much-needed capital.”
The Unexpected Twist in Mortgage Interest Rates
Amidst the upward trajectory of deposit interest rates, a surprising move by several banks has been to announce a further reduction in home loan interest rates.
The Art of Monetary Manipulation: Central Bank’s Directive to Stabilize Deposit Rates and Reduce Lending Rates
On August 4, the State Bank of Vietnam (SBV) hosted a conference in Hanoi to discuss measures to stabilize deposit interest rates and reduce lending rates. The conference was chaired by SBV Deputy Governor Pham Thanh Ha.
Over 15.3 Million Billion Dong Flows into the Banking System
As of the end of May, resident and business deposits in credit institutions reached a record high of over 15.34 million billion VND. This remarkable achievement underscores the robust financial landscape in Vietnam, showcasing the confidence and trust that individuals and enterprises have in the country’s banking system.
Gold Slides After Powell Says No Rush to Cut Rates
The Fed’s meeting spurred a rise in Treasury yields and the dollar, exerting downward pressure on precious metals.
