State Bank continues to reduce operating interest rates

On June 16, the State Bank of Vietnam (SBV) issued decisions adjusting interest rates, effective from June 19.

Specifically, the State Bank issued the following decisions:

Decision No. 1323/QD-NHNN dated June 16, 2023 on refinancing interest rates, rediscount interest rates, overnight lending rates in interbank electronic payments and loans to cover capital shortages in clearing payments of the State Bank of Vietnam for credit institutions (CIs).

Accordingly, the overnight lending interest rate in interbank electronic payments and lending to cover capital shortages in clearing payments of the State Bank of Vietnam for credit institutions will decrease from 5.5%/year to 5%/year; the refinancing interest rate will decrease from 5.0%/year to 4.5%/year; the rediscount interest rate will decrease from 3.5%/year to 3.0%/year.

Decision No. 1324/QD-NHNN dated June 16, 2023 on maximum interest rates for deposits in Vietnamese Dong (VND) of organizations and individuals at credit institutions as prescribed in Circular No. 07/2014/TT-NHNN dated March 17, 2014.

Accordingly, the maximum interest rate applied to non-term deposits and deposits with terms of less than 1 month remains at 0.5%/year; the maximum interest rate applied to deposits with terms from 1 month to less than 6 months decreases from 5.0%/year to 4.75%/year, while the maximum interest rate for deposits in VND at People's Credit Funds and Microfinance Institutions decreases from 5.5%/year to 5.25%/year; the interest rate for deposits with terms of 6 months or more is determined by credit institutions based on the supply and demand of capital in the market.

Decision No. 1325/QD-NHNN dated June 16, 2023 on the maximum short-term lending interest rate in VND of credit institutions for borrowers to meet capital needs for a number of economic sectors and fields as prescribed in Circular No. 39/2016/TT-NHNN dated December 30, 2016.

Accordingly, the maximum short-term lending interest rate in VND of credit institutions for borrowers to meet capital needs for a number of economic sectors and industries is reduced from 4.5%/year to 4.0%/year; the maximum short-term lending interest rate in VND of People's Credit Funds and Microfinance Institutions for these capital needs is reduced from 5.5%/year to 5.0%/year.

Source