Tuesday,  Sep 25, 2018,08:06 (GMT+7) 0 0
Banks asked to lower lending rates
The Saigon Times Daily
Wednesday,  Feb 28, 2018,22:16 (GMT+7)

Banks asked to lower lending rates

The Saigon Times Daily

File photo of customers transacting with Vietcombank in HCMC. The State Bank of Vietnam (SBV) has asked commercial banks to lower lending rates this year to support businesses - PHOTO: UYEN VIEN

HCMC – The State Bank of Vietnam (SBV) has asked commercial banks to lower lending rates this year to support businesses and economic growth, according to Thanh Nien newspaper.

The central bank will keep a close watch on macro-economic and currency market developments to flexibly adjust interest rates through open market operations (OMO). SBV has reduced its OMO rate from 5% to 4.75% per year. 

The Big Four – Vietcombank, Agribank, VietinBank and BIDV – have cut their short, medium and long-term lending rates by 50 basis points for creditworthy customers in priority sectors.

VPBank has also slashed annual lending rates by up to one percentage point for small and medium enterprises active in the consumer goods, supporting, manufacturing, processing and environment industries.

At a meeting on banking sector tasks in 2018, SBV Governor Le Minh Hung asked credit institutions to continue lowering operating costs and improving business performance so that they can offer lower interest rates for borrowers. 

“In the coming time, SBV will have flexible monetary policy to help banks lower lending rates,” said SBV deputy governor Nguyen Thi Hong at the meeting.

According to SBV’s report, the current interest rates for Vietnam dong range from 0.8% to 1% per year for call deposits and terms of under one month, from 4.3% to 5.5% for terms of one month to under six months, 5.3% to 6.5% for terms of six months to under 12 months, and 6.5% to 7.3% for terms of 12 months or longer.

For priority sectors, the lending rates for short-term loans range from 6 to 6.5% and from 9 to 10% for medium and long-term loans.

For other sectors, the rates are 6.8-9% for short-term loans and 9.3-11% for medium and long-term loans.

The rates for U.S. dollar loans are 2.8-4.7% per year for short-term loans and 4.6-6% for medium and long-term loans.

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