Interest rates kept stable in first half of 2018

ABO/VNA – The interest rates were kept stable in the first six months of 2018 while the lending rates for priority fields have decreased.

Illustrative Image (Photo: Thai Thien).

The information was revealed at a meeting to review the banking activities in the first half of 2018 in Ho Chi Minh City on June 13.

State and commercial banks cut about 0.5 percent per year in interest rates for consumers with good credibility.

At current, interest rates of short-term loans stand at 6-9 percent while those of mid- and long-term loans are about 9-11 percent. Those with high credibility and financial capability could enjoy rates of 4-5 percent per year.

According to Vice Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong, to ensure the liquidity of credit organisations and stabilisation of the monetary and forex market, the central bank will focus on the flexible management of open market operations in line with market developments and available capital of credit organisations.

The bank will make it easier for credit organisations to reduce lending rates on the basis of ensuring safe operations, financial health and reducing bad debts.

Head of the SBV’s Monetary Policy Department Pham Thanh Ha said the restructuring of credit organisations continues to be stepped up this year.

At present, commercial banks have basically built restructuring plans in association with dealing with bad debts, he said.

The inspection of banks has been increased to prevent, detect and resolutely address risks and violations of credit organisations, he added.

Apart from improving legal foundation, the SBV has enacted numerous measures to boost non-cash payment and encourage credit organisations to apply technology in payment technical infrastructure, strengthen security, and ensure interests for customers.

As of late March, there were 17,887 operating automated teller machines (ATMs) and 278,768 points of sale (POS) nationwide, not to mention a huge volume of online transactions.

(Source: VNA)