Will banks continue to reduce interest rates?

(NLDO) – The State Bank requires credit institutions to simplify lending procedures and apply technology to reduce lending interest rates.

The State Bank has just issued a document requesting credit institutions and foreign bank branches to focus on implementing solutions to support businesses in overcoming difficulties and promoting production and business activities in 2024 and the following years.

Accordingly, credit institutions continue to effectively implement solutions and tasks under the direction of the State Bank in 2024 to support businesses in removing difficulties and promoting production and business activities.

The management agency will continue to drastically implement solutions to reduce costs, review the fee collection situation currently applied at commercial banks to consider and reduce unnecessary fees, and publicize the fee levels provided in business activities.

Credit institutions need to simplify lending procedures, increase the application of information technology in the lending process to reduce lending interest rates, support businesses and people to develop production and business, and promote economic growth.

Banks are required to continue to strive to reduce loan interest rates to support corporate and individual customers at the end of the year.

Continue to implement solutions for safe and effective credit growth, promptly meet the credit capital needs of the economy (especially the credit capital needs for production, business and consumption during the 2025 Lunar New Year), directing credit to production, business, priority sectors, and growth drivers of the economy according to the Government's policy.

State Bank data shows that by the end of October 2024, credit growth of the banking system reached more than 10% compared to the end of last year.

The banking industry's target this year is to achieve 15% credit growth. Promoting credit growth is considered one of the key solutions to support economic growth this year.

According to the reporter's notes, today's interest rates for credit packages remain low and preferential.

Currently, banks are implementing a series of preferential credit packages and low-interest loans to boost credit growth at the end of the year.

Sacombank has a short-term loan package of 15,000 billion VND with interest rates from 4.5%/year for corporate customers; and interest rates from 5.5%/year for individual customers when borrowing for production and business.

LPBank has implemented a preferential credit program with a total amount of 3,000 billion VND, with a loan interest rate of 5%/year. At Agribank, the loan interest rate for preferential packages is from 3%/year, with a special credit package of 20,000 billion VND for enterprises in the fields of agriculture, aquaculture, processing and import of raw materials with an interest rate of 2.6%/year applied for a term of less than 3 months...

Source: https://nld.com.vn/lai-suat-hom-nay-19-11-cac-ngan-hang-se-giam-tiep-lai-vay-196241119130152585.htm