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%.
As many as 531 billion VND (21.7 million USD) under the 120 trillion VND credit package for social housing development has been disbursed, according to Director General of the State Bank of Vietnam (SBV)’s Department of Credit for Economic Sectors Ha Thu Giang.
There will be little room for further reduction in deposit interest rates in 2024 as they have dropped deeply to pre-COVID-19 levels, while the lending interest rate can still be lowered by 1-1.5 percentage points next year, Vietcombank Securities (VCBS) forecast.
The Vietnam Bank for Agriculture and Rural Development (Agribank) has decided to cut interest rates for short, mid and long-term loans in five priority fields, starting from May 13.
Indonesia's central bank cut interest rates for the fourth month in a row on October 24 as Southeast Asia's largest economy looks to counter slowing global growth.
Liquidity in the interbank market has been abundant, helping the State Bank of Vietnam (SBV) resume the issuance of treasury bills after five months to withdraw Vietnamese dong from the banking system.
The finance, banking and insurance industry expanded 7.89 percent in the first nine months of this year, the highest level recorded in the past seven years.
The State Bank of Vietnam (SBV) has reduced its prime interest rates and the cap on short-term loan rates as from July 10 to serve demand for capital in some economic sectors.
Small-sized enterprises are concerned that they would have to borrow from credit institutions at higher rates when new lending regulations take effect next month.
The Indonesian government aims to bring the lending rate across the banking system down to a single digit, as part of its attempt to create more affordable financing to stoke growth in the country.
