Central bank demands lending rate cuts, growth target to be met

By VNA   May 31, 2024 | 06:36 pm PT
Central bank demands lending rate cuts, growth target to be met
An employee counts Vietnamese banknotes at a bank in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
The State Bank of Vietnam (SBV) has demanded credit institutions to deliver a system-wide credit growth target of 5-6% by the end of the second quarter this year, and reduce lending rates by 1-2%.

The SBV has outlined several measures to address current issues related to credit and interest rates, including simplified loan procedures, cost-saving measures and stronger applications of IT and digital technology

The central bank aims to cut lending rates by 1-2%, with a focus on supporting economic recovery and growth drivers, emerging sectors, green transitions, circular economy and social housing.

It’s also part of an effort to grant easier access to financial solutions and credit, in line with a decision approved by the government and the Prime Minister.

The decision requires credit institutions across the country to maintain a stable, reasonably adjusted deposit interest rate that improves capital balance, credit expansion and risk management and promotes stability in the monetary market.

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