The Prime Minister directed to strengthen the implementation of solutions to reduce interest rates.

Prime Minister Pham Minh Chinh has just signed and issued Official Dispatch No. 19/CD-TTg on strengthening the implementation of solutions to reduce interest rates.

The Prime Minister directed to reduce bank interest rates. (Photo: VGP)

The telegram stated that, in recent times, the Government, Prime Minister There have been many instructions for the State Bank of Vietnam and credit institutions (especially in Resolution No. 01/NQ-CP dated January 8, 2025 and Resolution No. 27/NQ-CP dated February 7, 2025 of the Government) on continuing to implement solutions to reduce lending interest rates, remove difficulties for customers, support people and businesses to develop production and business, and promote growth. However, recently, some commercial banks have adjusted their deposit interest rates up, which is a factor that increases lending interest rates.

To continue to strengthen the effectiveness and efficiency of state management in the monetary and banking sectors to further promote economic growth, ensuring the national GDP growth target of 8% or more in 2025 according to the conclusions of the Central Committee and the Resolutions of the National Assembly and the Government; the Prime Minister requests:

The State Bank of Vietnam shall preside over and coordinate with relevant agencies to: immediately inspect and examine commercial banks that have recently adjusted their deposit interest rates and the announcement and implementation of deposit and lending interest rates by credit institutions, ensuring compliance with legal regulations and instructions of the Government, the Prime Minister, and the State Bank of Vietnam; promptly and strictly handle violations and non-compliance with instructions of the Government, the Prime Minister, and the State Bank of Vietnam as prescribed, in which the Governor of the State Bank of Vietnam shall consider and decide to use the State Bank of Vietnam's management tools on credit growth limits and license revocation as prescribed, and report the implementation results to the Prime Minister before February 28, 2025.

Regularly monitor and closely supervise the developments in interest rates of mobilization and lending of commercial banks, implement more drastic and effective solutions within the authority to reduce the lending interest rate level, create conditions for people and businesses to access loans at reasonable costs, restore and develop production and business, promote economic growth associated with macroeconomic stability, control inflation, ensure major balances of the economy, safe banking operations and the system of credit institutions in accordance with the solutions prescribed in Resolution No. 01/NQ-CP dated January 8, 2025 and Resolution No. 27/NQ-CP dated February 7, 2025 of the Government.

Strengthen the effectiveness of inspection, examination, control and close supervision of the activities of credit institutions, especially the announcement of mobilization interest rates, lending interest rates, and credit granting activities of credit institutions; promptly and strictly handle violations according to the provisions of law, especially credit institutions that compete unfairly and not in accordance with regulations on interest rates (including mobilization interest rates and lending interest rates).

The State Bank of Vietnam directs and requires credit institutions to: strictly implement the direction of the Government and the State Bank of Vietnam on continuing to reduce operating costs, increase the application of information technology, simplify administrative procedures, restructure and reorganize the apparatus to operate more effectively, enhance social responsibility, be willing to share part of the profits to reduce lending interest rates to support people and businesses to access bank credit capital, promote production and business development, create livelihoods for people and positively impact banking activities.

Focus credit on production and business sectors, priority sectors and traditional economic growth drivers (consumption, investment, export) and new growth drivers (digital transformation, green transformation, circular economy, sharing economy, science, technology and innovation, etc.); strictly control credit for potentially risky sectors, ensuring safe and effective credit operations. Regularly report to the State Bank of Vietnam on the announcement and implementation of mobilization interest rates and lending interest rates according to regulations.

The Governor of the State Bank of Vietnam directly directs, monitors and organizes the implementation of the tasks assigned in this Official Dispatch; is responsible to the Government and the Prime Minister for the implementation results.

The Prime Minister assigned Deputy Prime Minister Ho Duc Phoc to directly direct the State Bank of Vietnam and relevant agencies to perform the tasks assigned in this Official Dispatch.

Source