The State Bank of Vietnam requests that credit institutions strive to reduce lending interest rates by 1-2% p.a., with system-wide credit growth at 5-6% by the end of the second quarter.

The State Bank of Vietnam (SBV) has just sent a document to credit institutions, foreign bank branches (collectively referred to as credit institutions) requesting the implementation of a number of solutions on credit and interest rates.

In particular, the agency requested credit institutions to continue efforts to reduce lending interest rates by 1 - 2 percentage points thanks to cost reduction, simplified lending procedures, increased application of information technology and digital transformation in the lending process.

Credit needs to be directed towards traditional growth drivers, emerging industries, green transformation, circular economy, social housing, etc. to support businesses and people to develop production and business, increase ability to access bank credit.

However, along with that, credit institutions also need to maintain a stable and reasonable deposit interest rate level, consistent with the ability to balance capital, expand healthy credit, manage risks; and the ability to stabilize currency markets and market interest rates.

In addition, the State Bank requested to continue implementing effective, correct, and targeted credit growth solutions, promptly meeting the credit capital needs of the economy, directing credit to production and business sectors, priority areas and economic growth drivers.

In addition, the agency requested credit institutions to review projects to ensure timely credit supply for feasible projects, speed up loan approval, and apply flexible measures in accordance with the law that are convenient for borrowers. 

At the same time, promote diversification of credit products and services suitable for each customer segment, focusing on developing new credit products to meet the needs of people's lives and consumption. Proactively and actively communicate promptly, clearly and fully about the policies, products and services of credit institutions to help people and businesses know and access programs and policies offered by credit institutions.

Kylie Nguyen