Proposing banks to make efforts to further reduce loan interest rates by 1 - 2%/year

The State Bank of Vietnam (SBV) has just sent a document to credit institutions (CIs) and foreign bank branches requesting the implementation of a number of solutions on credit and interest rates.

Accordingly, the State Bank of Vietnam requires credit institutions and foreign bank branches to continue to drastically implement solutions to reduce costs, simplify lending procedures, increase the application of information technology and digital transformation in the lending process to strive to reduce lending interest rates by 1-2%/year, especially for traditional growth drivers, emerging industries, green transformation, circular economy, social housing... to support businesses and people to develop production and business, increase access to bank credit capital.

At the same time, maintain a stable and reasonable mobilization interest rate level, consistent with the ability to balance capital, the ability to expand healthy credit and the ability to manage risks, stabilize the monetary market and the market interest rate level.

The SBV also requested to continue implementing effective, correct and targeted credit growth solutions, promptly meeting the economy's credit capital needs, directing credit to production and business sectors, priority sectors and economic growth drivers, striving for credit growth of the whole system by the end of the second quarter of 2024 at 5-6%; strictly controlling credit for potentially risky sectors, ensuring safe and effective credit activities.

In addition, actively review projects to ensure timely credit supply for feasible projects, speed up loan approval, apply flexible loan collateral measures and forms in accordance with legal regulations, and facilitate loan customers.

In addition, promote the diversification of banking credit products and services suitable for each customer segment, focusing on developing new credit products to meet people's living and consumption needs.

According to Tin Tuc Newspaper

Source: https://doanhnghiepvn.vn/kinh-te/de-nghi-cac-ngan-hang-no-luc-giam-tiep-lai-vay-tu-1-2-nam/20240531102612531