The State Bank will consider reducing policy interest rates further
The State Bank of Vietnam will consider reducing policy interest rates further along with directing credit institutions to reduce costs and profits to facilitate further reducing lending rates in a sustainable manner.
This is the affirmation of the Governor of the State Bank Le Minh Hung at the Prime Minister's Conference with businesses taking place on morning May 9 in Hanoi.
The head of the banking industry also affirmed that the State Bank will conduct the monetary policy to stabilize the macro-economy, create favorable conditions for economic recovery after the pandemic, work to ensure stable exchange rates and be ready to intervene to ensure foreign currency liquidity for the economy, not to cause macroeconomic instability.
The State Bank is also committed to providing sufficient capital for the economy, and based on the capital needs for growth, the State Bank will consider adjusting credit growth for credit institutions at a higher level than the beginning of the year.
According to Governor Le Minh Hung, as of May 8, 2020, the entire banking system had restructured debts for over 215,000 customers; outstanding loans of about VND 130,000 billion; exempted, reduced loan interest to about 260,000 customers with outstanding loans of over VND 1 million billion.
The banking system has also provided new loans with preferential interest rates for businesses with accumulated loans from January 23 (the time when the Prime Minister announced the COVID-19 outbreak) to date reaching VND 630,000 billion for 182,000 customers with lower interest rates from 0.5 to 2.5%.
Governor Le Minh Hung also affirmed that the State Bank may consider extending debt restructuring offer if necessary. The policy of supporting businesses is implemented on the principle: sharing difficulties and accompanying borrowers with the resources of the banking industry itself. Credit programs are conducted from the saving resources of people and businesses, therefore, the requirement for credit institutions is to ensure safety of lending and operational safety so as not to cause negative impacts on the economy.
“Following this conference, the State Bank will set up working groups to localities, especially key economic areas to grasp the situation and promptly handle arising problems. The banking system is committed to continuing to accompany the business community to overcome difficulties, contributing to achieving the growth target,” said the head of the banking industry.
- The State Bank and enterprises join hands to promote cashless payments
- Credit growth plummeted due to the impact of COVID-19 pandemic
- Controlling inflation is a top priority
- More positive forecasts about exchange rate stability in 2020
- SBV tightened information security in banking operations
- Helping businesses access capital more easily but not by lowering lending standards
- BVSC: Interest rates are likely to move sideways in the near term
- Digital banking and electronic payment are set to boom in the time of Covid-19
- Non-cash payments have recorded positive changes
- State Bank of Vietnam cut down regulations on business activities