Prime Minister Pham Minh Chinh has instructed the State Bank of Vietnam (SBV) to enhance efforts to lower lending rates to support businesses and spur economic growth.

In an official dispatch signed by the PM on February 24, PM Chinh asked the central bank to immediately inspect and monitor banks that have increased deposit rates and ensure compliance with legal regulations and governmental policies. Violations will face strict penalties, including possible credit growth limits and license revocation.

The Government has recently had many directions instructing the SBV and credit institutions to reducing lending rates, tackling difficulties for customers, and supporting people and business to promote production and trade. However, some commercial banks were recently found to raise deposit rates, pushing up lending rates, according to the dispatch.

The central bank was also tasked with closely supervising interest rate movements and taking decisive steps to lower lending rates, ensuring businesses and individuals can access affordable credit to drive production, stabilize the economy, and control inflation.