What does the State Bank say about the proposal to continue reducing operating interest rates?

08/21/2023 07:36 Nhat Linh Print article

ANTD.VN - The State Bank has just responded to voters' petitions regarding continuing to reduce operating interest rates, thereby reducing lending interest rates to support businesses.

Among the voters' recommendations sent to the State Bank, the issue of reducing lending interest rates to support businesses and people received special attention and had the most recommendations.

Voters in Hoa Binh province have asked the State Bank to be more drastic in reducing bank operating interest rates to reduce lending interest rates to create conditions for businesses to recover and develop after the impact of the Covid-19 pandemic.

Responding to the above proposal, the State Bank said that recently, implementing the policy of the National Assembly, the direction of the Government and the Prime Minister, the State Bank has continuously adjusted down the operating interest rates 4 times with a reduction of 0.5-2.0%/year, in the context of world interest rates continuing to increase and anchor at high levels.

Thereby, continuing to orientate reducing the market lending interest rate level, increasing access to capital for businesses and people, contributing to promoting economic growth.

What does the State Bank say about the proposal to continue reducing operating interest rates? photo 1

Voters want the State Bank to continue reducing operating interest rates to reduce lending rates.

At the same time, the State Bank has implemented many synchronous measures to reduce lending interest rates such as: Directing credit institutions to maintain a stable and reasonable mobilization interest rate level, consistent with the ability to balance capital, the ability to expand healthy credit and the capacity to manage risks; not affecting the stability of the monetary market and the market interest rate level 1; strictly controlling deposit interest rates to maintain the stability of the market interest rate level 2.

Encourage credit institutions to reduce costs to reduce lending interest rates to support businesses in recovering and developing production and business;

Organize direct working sessions with credit institutions to propose measures to reduce deposit interest rates and cut costs, thereby creating room to reduce lending interest rates for customers; coordinate with the Banking Association to mobilize the consensus of member credit institutions to continue reducing lending interest rates.

Direct credit institutions to actively and proactively communicate on mass media about reducing lending interest rates; at the same time, provide specific information to customers about the lending interest rate reduction policy so that customers know and access the credit institution's support policies.

Accordingly, commercial banks have proactively adjusted and implemented preferential credit programs/packages to reduce lending interest rates by about 0.5-3.0%/year depending on the customer for new loans; at the same time, committed to reducing lending interest rates by about 0.2-2.5%/year in the last 6 months of 2023 depending on the customer and sector.

By the end of June 2023, the average deposit and lending interest rates of new transactions in VND of commercial banks will decrease by about 1.0%/year compared to the end of 2022. "With the impact of policy lag and the commitment to reduce lending interest rates of credit institutions, it is expected that the lending interest rate level for the economy will continue to decrease in the coming time" - said the State Bank.

In the coming time, the State Bank said it will continue to closely monitor domestic and international currency developments, forecast inflation and market interest rates to manage interest rates in accordance with macroeconomic balance, inflation and monetary policy targets.

“The State Bank will continue to have solutions to encourage credit institutions to reduce costs to reduce lending interest rates to support businesses to recover and develop production and business,” the State Bank affirmed.

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