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Tuesday, June 25, 2024

Making interest rates transparent

By Thuy Le

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That credit institutions are required to publicize their average interest rates for loans may be used as a tool to compete for customers. Interest rates as a tool to sharpen competitiveness The average lending rate in February 2024 of the finance company FE Credit was recently announced at 23.4%, marking one of the first credit institutions to disclose this data as required by the central bank. Since the beginning of the year, the State Bank of Vietnam (SBV) has repeatedly asked credit institutions to publicly announce the average lending rates on their websites, such as at banking industry conferences, in Directive 01/CT-NHNN, or at the recent online conference on boosting bank lending in 2024. Most recently, in Document No. 18/CD-TTg dated March 5, 2024, on managing credit growth in 2024, the Prime Minister requested the SBV to direct credit institutions to publicly announce average lending rates to facilitate access to credit for individuals and businesses in choosing banks for loans. The SBV also believes that greater transparency in interest rates will ensure fairness and objectivity in competition. In the context of the economy still growing slowly and the demand for loans not yet strong, with credit growth as of February […]
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