More Vietnam Banks Cut Lending Rates

More big banks including Vietinbank, BIDV, LienVietBank, Military Bank…have joined efforts to cut lending rates to push down average lending rates to 16.2 per cent per annum on October 23, down from 17 per cent Wednesday after the State Bank of Vietnam slashed benchmark rate to 13 per cent from 14 per cent, the Labor newspaper said.

 

The Bank for Investment & Development of Vietnam (BIDV) axed by 1 per cent-1.3 per cent of lending rates to 16.2 per cent-16.5 per cent for exporters and to 17 per cent per annum for ordinary clients, the newspaper said.

 

Vietinbank cut by 0.4 per cent of lending rates to 17.8 per cent per annum, by 1 per cent of lending rates of medium and long-term loans. Vietinbank also said it will lower lending rates to below 16.2 per cent for traditional borrowers, the paper added.

 

LienVietBank, Military Bank, SHB and VIB also joined efforts with BIDV and Vietinbank to cut borrowing costs.

 

“SBV’s base rates cut is a right move at the moment as CPI is on the downtrend with petrol and food prices accounting for 42.8 per cent of the basket of CPI calculation and abating,” Cao Sy Kiem, former governor of SBV told the Tien Phong (Pioneer) newspaper.

 

Governor of SBV Nguyen Van Giau said base rates cuts are aimed at add more liquidity to the entire economy and protecting the local banking systems from risks of the global financial crisis. (Labor, Pioneer)