HCMC – A unified move to slash borrowing costs for businesses and individuals was reached during a high-level banking sector meeting today, April 9.
At the session held by the State Bank of Vietnam (SBV), representatives affirmed their commitment to lowering deposit and lending rates. This collective move aims to curb recent competitive interest rate hikes among some commercial banks and aligns with the Government’s directive to foster economic growth while maintaining macroeconomic stability.
The interest rate reduction comes as the SBV implements an active and flexible monetary policy to navigate a complex international landscape. In the first quarter of this year, the central bank maintained its policy rates to provide financial institutions with access to low-cost capital, while simultaneously managing open market operations and exchange rates to absorb external shocks.
To date, the SBV has assigned a credit growth target of 15% for the year, urging banks to prioritize lending toward manufacturing, prioritized sectors, and economic growth drivers rather than high-risk areas and the real estate sector.
Moving forward, the SBV will strictly monitor the implementation of these rate cuts, including the mandatory public disclosure of lending rates on each bank’s official website. The central bank stands ready to provide liquidity support to commercial banks while intensifying inspections and supervision to ensure compliance.
Any violations regarding capital mobilization or lending will be strictly penalized to ensure the safety of the banking system and the effectiveness of the Government’s efforts to lower the cost of borrowing for the economy.
