VNBA Calls for Further Rate Cuts

The Vietnam Bank Association (VNBA) has sent the Official Document 163/HHNH to leaders of commercial banks, urging them to lower deposit and lending interest rates under the spirit of the Government’s Resolution 18/NQ-CP and Resolution 23/NQ-CP in a bid to stabilise the monetary market, control inflation and achieve growth target as expected by the Government.

 

Aiming to lay conditions to slash the lending interest rate level in the near future, the VNBA asked local banks to reduce the deposit interest rate in Vietnam dong (VND) from 11.2 percent per annum to 11 percent per annum as from October 15. Regarding interest rates of demand and under 3-month term deposits, the association asked commercial banks to cut more to lure more long-term capital. VNBA also told banks to slash the US dollar interest rate to create a counterweight balance with interest rates of VND deposits.

 

Besides, the association also told banks to decrease lending rates for prioritized borrowers like exporters, SMEs and agricultural companies in rural areas.