The State Bank of Vietnam (SBV) has urged credit institutions and foreign bank branches to strictly implement tasks relating to credit and interest rates following directions from the government and the Prime Minister.

Firstly, credit institutions need to proactively balance their financial sources to meet credit demand in the economy. Credit provision will focus on priority fields in production and business, such as agriculture, exports, small and medium-sized enterprises (SMEs), supporting industry, and enterprises applying high technology.

Secondly, they are required to tighten control over credit risks for activities relating to corporate bond investment, securities trading, and real estate trading.

Thirdly, they are instructed to continue implementing interest rate support programs under Government Decree No.31/2022/NĐ-CP  issued on May 20 on interest rate support from the State budget for loans taken out by enterprises, cooperatives, and business households, and Circular No.03/2022/TT-NHNN issued by the SBV on May 20 guiding the implementation of Decree No. 31.

Fourthly, they need to continue reducing operational costs, administrative procedures, and unnecessary expenses to create space to cut interest rates on loans as prescribed in Resolution No. 43 issued on January 11 by the National Assembly on fiscal and monetary policies to support the socioeconomic recovery and development program and directions from the government and the Prime Minister.

The SBV said it will closely watch the operations of credit institutions, and those found to be raising interest rates will be punished.