Central bank to nudge commercial banks against lending interest rate hikes

Created 24 September 2022
  • PDF
Editor Choice
Share
(0 votes, average 0 out of 5)

The State Bank of Vietnam will encourage commercial banks to lower its costs to keep lending interest rates unchanged, a deputy governor said Friday.
Central bank to nudge commercial banks against lending interest rate hikes

The bank would not regulate lending interest rates because they depend on negotiations between lenders and their clients, deputy governor Dao Minh Tu said.

On Thursday, for the first time in two years, the central bank increased , including deposit, rediscount and refunding rates. On Friday, commercial banks announced new deposit interest rates.

The higher deposit interest rates will help banks increase liquidity, but usually leads to higher loan interest rates as well. Early this year, the central bank had pledged to reduce lending interest rates in the 2022-2023 period.

Tu said the central bank hiked regulatory interest rates to control inflation, stabilize the exchange rate and foreign exchange markets and ensure security of the banking system.

It has so far kept target at about 14% this year, but there will be adjustments depending on actual situations, he added.

As of mid-September, Vietnam’s credit had grown by 10.47% against late 2021, and expanded by 17.19% over the same period last year. Bank loans were mainly used for production and business.


Source: VNE

Maybe You Also Interesting :

» Apartment market to continue slumping this year

The supply of apartments in southern Vietnam, especially Ho Chi Minh City and neighboring Binh Duong Province, is expected to fall 25% in 2023, according to...

» HCMC traveler rescued 5 days after falling off cliff near Hai Van Pass

A traveler from HCMC was trapped inside a hole at a beach in Da Nang's Hai Van Pass for 5 days before being rescued on Sunday.

» Vietnamese artist's song enters Eurovision Germany finals

The "Dare To Be Different" music video by Vietnamese artist Trong Hieu is among 8 videos competing in the final round of Eurovision Germany.