Banks pledge to reduce lending rates after central bank meeting

Banks pledge to reduce lending rates after central bank meeting

Commercial banks have committed to lower deposit and lending rates to support economic growth and manage inflation risks at the meeting with Governor of the State Bank of Việt Nam Phạm Đức Ấn on April 9.

Commercial banks have committed to lower deposit and lending rates to support economic growth and manage inflation risks at the meeting with Governor of the State Bank of Vietnam Phạm Đức Ấn on April 9. — Photo baochinhphu.vn

Commercial banks have committed to lower deposit and lending rates to support economic growth and manage inflation risks.

The announcement was made during a meeting with Governor of the State Bank of Vietnam, Phạm Đức Ấn, on April 9.

Director of the Monetary Policy Departmetn Phạm Chí Quang said monetary policy in the first quarter was managed proactively and flexibly to stabilise the macroeconomy, control inflation and promote growth.

Credit growth has been guided in line with the target of a 15 per cent growt for 2026, he said, adding that lenders have been asked to control flow into higher-risk sectors such as real estate, while prioritising credit for production, business and key sectors.

As of end-March, total outstanding credit rose about 2.65 per cent to VNĐ19.08 quadrillion (US$745 billion), he said, adding that the central bank continued to keep key policy rates unchanged to ensure banks can access funding at relatively low cost.

However, recent global developments, particularly geopolitical tensions in the Middle East, have added pressure on inflation, while domestic demand for credit is rising with the country’s two-digit growth targets.

He pointed out that that competition among some lenders for deposits had pushed up funding costs, contributing to upward pressure on both deposit and lending rates in recent months.

In response, 42 commercial banks at the meeting agreed to align with government and central bank guidance to reduce interest rates, committing to reduce both deposit and lending rates in the period ahead.

Governor Ấn called on lenders to closely monitor rate movements and ensure transparency in publishing interest rates on their official websites.

The central bank said it will continue to manage monetary policy in line with market developments, stand ready to provide liquidity support and step up inspections to ensure compliance with directives on interest rates, while addressing violations in deposit and lending activities. 

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