The State Bank of Vietnam (SBV) has issued decisions on deposit interest rates at credit institutions and foreign bank branches. Specifically, the maximum interest rate for non-term and under-1-month term deposits in VND is set at 0.5%/year, while for 1-month to under-6-month term deposits, the rate is 4.75% (5.25%/year for People’s Credit Funds and microfinance institutions).
Mr. Nguyen Duc Lenh, Deputy Director of SBV’s Ho Chi Minh City Branch, assessed that from a professional perspective, the issuance of these decisions on interest rates is in line with the newly promulgated circulars. However, from a policy standpoint, these interest rates remain unchanged, reflecting the SBV’s role as a regulatory tool and its effective implementation of monetary and credit policies.
Mr. Lenh stated that maintaining these interest rates continues to build on the achievements in monetary policy management, aiming to fulfill the dual task of macroeconomic stability and economic growth support. The current regulatory interest rates, along with macroeconomic stability and economic growth support over the past period, especially during challenging times for the economy (COVID-19 pandemic and its aftermath, volatile global economy and international financial market, escalating geopolitical conflicts, etc.), demonstrate the appropriateness and market responsiveness of the SBV’s past and present regulatory interest rates, effectively achieving monetary policy objectives.
Furthermore, the unchanged VND deposit interest rates for short-term (under 6-month) deposits not only reflect the SBV’s orientation to maintain stable interest rates to support businesses and promote economic growth but also continue to build and reinforce the trust of people, businesses, and investors in the policies. It also contributes to creating a favorable investment and business environment, attracting and expanding production and business activities, investment promotion, and economic growth. Stability in the monetary and foreign exchange markets is of significant importance in this context.
Stable short-term deposit interest rates, coupled with administrative reforms, improved banking service quality, innovative transaction models, and reduced input costs, will provide a crucial basis for credit institutions and the banking sector to lower or sustain stable lending rates. This is a vital factor in supporting businesses, promoting economic growth, and positively impacting banking activities and the effectiveness of the SBV’s policy management. The actual and tangible results of macroeconomic stability and business support over the past period, as well as the growth in deposits and credit extensions, attest to the effectiveness of the SBV’s monetary and credit policy management.
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