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Commercial banks cut down interest rates under SBV guidance
In response to the latest monetary policy measures taken by the State Bank of Vietnam under the instruction of the Prime Minister, on the afternoon of November 20, all the commercial banks quoted their lending cap of 16.5 percent p.a. starting from November 21. In particular, the state-owned commercial banks and various joint-stock commercial banks have decided to offer the lending rates of 12-14 percent p.a. in support of production households in the rural areas, small and medium enterprises (SMEs), exporters and other priority customers.
The SBV's latest measures announced on the morning of November 20 includes another cut of 1% applicable the VND-denominated base interest rate, the refinancing and rediscount rates, and the overnight rate in the inter-bank electronic payment, and a reduction of 2% applicable to the reserve requirement ratios in VND . These decisions aim at facilitating credit institutions to further enable their capacity of mobilization and liquidity, to conduct effective and prudent business and to reduce their lending rates, thereby contributing to the promotion of investment, production and economic growth.
Specifically, the Vietnam Bank for Agriculture and Rural Development (VBARD) quoted its lending rate of 12% p.a. to households in rural areas, and the rate of 13% p.a. for SMEs and customers in production, export and other priority policy-based sectors, and 13.5% p.a. to 14.5% p.a. for ordinary borrowers. In the mean time, the Bank for Investment and Development of Vietnam (BIDV) offered the maximum lending rate of 13% p.a. for SEMs and customers in export and other priority sectors and 14% p.a. to 14.8% p.a. for ordinary borrowers. Whilst the rates of 12-12.5% p.a. for priority customers and 13-14.5% p.a. for ordinary % for ordinary customers were quoted by the Vietnam Bank for Industry and Trade (VietinBank) and the rate of 12% for priority clients and and 13.5% for ordinary clients by VietcomBank.
Several joint-stock commercial banks have also decided to reduce their lending rates. The SaiGon ThuongTin Bank offered the minimum lending rate of 14% p.a. and the maximum lending rate of 16% p.a., and the rates of 14.5% p.a. and 16.5% p.a. quoted by LienViet Bank.
To facilitate the reduction of their lending rates, commercial banks have proceeded with the reduction of their mobilizing rates by 2% to 3% p.a.
SBV
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