Immediately following a meeting on the afternoon of April 9 chaired by the new Governor of the State Bank of Vietnam (SBV), Mr. Pham Duc An, commercial banks reached a consensus to lower both deposit and lending interest rates to support businesses and individuals.
This move comes as several banks have been aggressively competing for capital, causing market interest rates to spike in recent times.
During the meeting, the new SBV Governor noted that the international landscape remains complex and unpredictable. Escalating geopolitical and military tensions in the Middle East have driven up oil prices, exerting inflationary pressure on many nations. Domestically, the substantial demand for capital to meet economic growth targets has posed significant challenges to monetary policy management and banking operations.
Regarding capital mobilization and lending, a trend has emerged where some commercial banks are competing for funds, subsequently driving up deposit and lending rate floors. Consequently, the SBV convened a meeting with commercial banks to enforce the directives issued by the Government, the Prime Minister, and the SBV itself.
Moving forward, the SBV stated it will continue to closely monitor fluctuations in deposit and lending rates, as well as the mandatory public disclosure of lending rates on banks' official websites.
The central bank stands ready to implement appropriate monetary policy measures and provide liquidity support to commercial banks. Furthermore, the SBV will enhance inspection, auditing, and supervision to strictly penalize any violations in capital mobilization and credit activities.
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