Banks set to cut rates
Banks set to cut rates
Many banks plan to cut lending interest rates by 1 per cent soon, hoping this will help them achieve their credit growth target.
Their plan is based on the hope that the business environment will see positive changes, enabling them to increase lending.
It is feasible since they have plenty of liquidity now.
In recent months, interest rates have dropped sharply to 7-11 per cent for short-term loans and 11-13 per cent for medium- and long-term loans, but failed to spur lending growth, putting banks in danger of failing to achieve their targets.
Many are looking to slash the rates further, even to below deposit interest rates, through preferential lending packages.
Among of them are HDBank, BIDV, Vietinbank, Vietcombank, Agribank, MHB, DongABank, Sacombank, NamABank, KienlongBank, Military Bank, ABBank, and ACB, who have signed up for a VND3 trillion central bank credit programme at 8-9 per cent interest.
Under the agreement, the lenders will provide credit to 57 companies and two household businesses to help them rejuvenate their business.
For most of the businesses the peak season has just begun.
Besides cutting interest rates, the banks have also tweaked lending conditions, making them more flexible to enable companies to get cheap loans.
They have also resorted to measures such as delaying default deadlines to reduce pressure on borrowers and sell bad debts among themselves – and now to the Asset Management Company — to pump more money into the economy.
A survey done by the central bank's Monetary Forecast and Statistics Department found that banks' deposits and loans are likely to increase by 10-20 per cent by year-end.
Meanwhile, interest rates on the inter-bank market have also been declining, and inflation and exchange rates are stable.
vietnamnews
