Starting from March 6, 2023, the commercial banks have agreed to reduce their mobilizing interest rates by 0.2%-0.6% p.a. applicable to 6 to 12 month-term deposits, as compared to those quoted by each bank on February 27, 2023. These mobilizing interest rate reductions are aimed to allow the commercial banks to cut down on their costs, thereby enabling them to reduce their lending interest rates to support the businesses and the economy, especially in the priority sectors and areas.
Over the past months, the State Bank of Vietnam (SBV) has closely monitored the monetary developments in the domestic and international markets, made projections about the inflation and the market interest rates in order to manage the key interest rates appropriately in line with the macro balances, the inflation and the monetary policy objectives. The SBV has directed the credit institutions to cut down on their operational costs in order to reduce their lending interest rates, which ultimately aims to support the businesses to recover and develop their production and business operations.
By the end of February 2023, the common interest rates in the market had been stabilized and on a downward trend. The average lending interest rate for new loans decreased by 0.43% p.a. (as compared to that of the end of 2022). 22 commercial banks had reduced their average lending interest rates.
In the first two months of 2023, the macro-economic stability continued to be maintained, the inflation was controlled, and the macro balances were ensured. As compared to the same previous period, the CPI in February 2023 increased by 4.31%, lower than the CPI increase in January 2023 (4.89%). The liquidity of the credit institution system was abundant. The banking sector continued to mobilize stable resources, meeting fully and promptly the demands for the credit growth of the economy.
On that basis, implementing the SBV’s directions, starting from March 6, 2023, the commercial banks have agreed to reduce their mobilizing interest rates by 0.2% to 0.6% p.a., applicable to 6 to 12 month-term deposits, as compared to those quoted by each bank on February 27, 2023. Among them, four state-owned commercial banks have agreed to cut down the interest rates by 0.2% p.a., while the joint stock commercial banks have agreed to reduce their lending interest rates by 0.5% p.a.
These mobilizing interest rate reductions are expected to allow the commercial banks to cut down on their costs, thereby enabling them to reduce their lending interest rates, which ultimately aim to support the businesses and the economy, especially in the priority sectors and areas, in alignment with the policy of the National Assembly, the Government and the Prime Minister./.
Source: sbv.gov.vn