Commercial banks urged to reduce interest rates

ABO/NDO- The State Bank of Vietnam (SBV) has just sent a document to credit institutions and branches of foreign banks on continuing to reduce interest rates.

Credit institutions are required to strictly comply with their commitments to reduce deposit interest rates, thereby creating room to lower lending interest rates, in order to support business recovery and promote economic growth.

The State Bank cut down a series of regulatory interest rates on June 19 to support the market in the context of low credit growth.

The headquarters of the State Bank of Vietnam.

At present, the SBV still requires the reduction of deposit interest rates to reduce lending rates, even though small and medium-sized joint stock commercial banks are all listing 12-month term interest rates below 8% per year and many banks are launching low-interest credit packages.

Credit institutions are also asked to actively disseminate information on interest rate cut and their lending rate reduction policies so that customers can get access to such packages.

(Source: NDO)