The State Bank of Vietnam (SBV) requires credit institutions and foreign bank branches to maintain stable and reasonable deposit interest rates, consistent with capital balance capacity, healthy credit expansion capacity and risk management capacity, contributing to stabilizing the monetary market and market interest rates.

Credit institutions are also required to continue to resolutely and effectively implement solutions, simplify lending procedures, increase the application of information technology and digital transformation in lending processes, etc. to strive to reduce lending interest rates to support businesses and people to promote production and business, increase access to bank credit capital according to the direction of the Government and the Prime Minister.

Continue to proactively announce average lending interest rates, the difference between average deposit and lending interest rates, lending interest rates for credit programs, credit packages and other types of lending interest rates (if any) on the electronic information page of credit institutions.

The management agency also requires credit institutions to actively communicate on mass media, guide customers and beneficiaries about the reduction of lending interest rates, publish information about interest rates; at the same time, provide specific information to customers about the policy of reducing lending interest rates so that customers can grasp and access the credit institution's policy.

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The State Bank of Vietnam requires stabilizing deposit interest rates and reducing lending interest rates. Photo: Nam Khanh

The State Bank of Vietnam directs its provincial and municipal branches to resolutely direct local credit institutions to maintain stable deposit interest rates and implement measures to strive to reduce lending interest rates; proactively announce information on lending interest rates and credit programs with preferential lending interest rates (if any) to customers to support businesses and people in developing production and business.

Closely monitor interest rate developments in the area; direct and supervise credit institutions and credit institution branches in the area in implementing the policies of the Government and the State Bank on reducing lending interest rates to support businesses and people.

According to VietNamNet statistics, from the beginning of November until now, 14 banks have increased deposit interest rates, including banks that have adjusted deposit interest rates up for the second time in less than a month.

According to VCBS, the trend of increasing deposit interest rates in the remaining months of 2024 is unlikely to continue and there will be differentiation among banking groups.

The gap between deposit balance and credit balance of the whole system remains high, which may continue to put pressure on the mobilization interest rate level at some small-scale joint-stock commercial banks to increase the competitiveness of the savings deposit channel compared to the investment yield of other investment channels in the market.

The need to prepare capital to meet credit demand from production and business activities often tends to increase in the last months of the year.