State Bank: Will 'handle' credit institutions that continue to increase interest rates
The State Bank requires credit institutions to seriously implement credit and interest rate work and will handle cases of continued interest rate increases.
On December 22, 2022, the State Bank of Vietnam (SBV) has just sent a document to credit institutions and foreign bank branches requesting them to seriously implement a number of contents on credit and interest rate work in the coming time.
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State Bank. |
The State Bank said that, based on the announced credit growth target, credit institutions proactively balance capital sources to promptly meet the credit capital needs of the economy, minimizing term risks.
The State Bank requires focusing on providing credit to production and business sectors, priority sectors (rural agriculture, export, small and medium enterprises, supporting industries, high-tech enterprises); economic growth drivers under the direction of the Prime Minister (investment, consumption and export); construction of industrial parks; lending to meet people's housing needs; housing real estate projects that are about to be completed and handed over, with the ability to repay loans fully and on time, ensuring legality, good liquidity, especially social housing projects, worker housing, commercial housing projects with suitable prices.
In addition, strictly control credit risks for corporate bond investment activities, potentially risky areas such as investment, securities trading, real estate sector, especially credit granting for investment and real estate trading purposes, in which control the level of credit concentration on a number of large customers/customer groups, large-scale projects, high-end segments...
In addition, the State Bank reminded banks to continue to promote the implementation of the interest rate support program from the state budget for loans of enterprises, cooperatives, and business households, including a circular from the State Bank guiding commercial banks to implement interest rate support according to the Government's Decree.
The State Bank noted that credit institutions should continue to reduce operating costs, administrative procedures, and unnecessary expenses to have room to strive to reduce lending interest rates according to the National Assembly's regulations on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program and the directions of the Government and the Prime Minister.
The State Bank emphasized that it will monitor cases where credit institutions continue to increase interest rates and take measures to deal with these credit institutions.
Regarding the issue of interest rates, at the meeting on December 15, the Vietnam Banking Association said that recently, a number of commercial banks have sharply increased their deposit interest rates, causing fierce competition for deposits, creating an unstable mentality for both depositors and borrowers.
Therefore, the Vietnam Banking Association calls on member banks to unify the application of a maximum deposit interest rate of 9.5%/year (including promotional interest rates) to stabilize deposit interest rates.
The Banking Association has proposed to the Governor a number of solutions to support commercial banks regarding liquidity support from now until the end of the Lunar New Year 2023, and at the same time agreed on a maximum interest rate of 9.5%/year for all terms (including promotional interest rates).