The “big banks” continuously reduce lending interest rates, pushing up credit demand

VCN - According to the State Bank of Vietnam (SBV), by the end of May 2023, the economy's credit reached over VND 12.3 quadrillion, an increase of about 3.17% compared to the end of 2022. This is a low growth rate,which needs to continue to reduce lending interest rates to boost credit demand.
Top 50 prestigious public companies in 2023: Shooting stars and unpredictable forecasts Top 50 prestigious public companies in 2023: Shooting stars and unpredictable forecasts
How to develop a Make in Vietnam digital technology business? How to develop a Make in Vietnam digital technology business?
The thrust from the legal corridor for digital bank transformation The thrust from the legal corridor for digital bank transformation
The “big banks” continuously reduce lending interest rates, pushing up credit demand
Four“big banks” have sharply reduced lending interest rates to support businesses

Recently, BIDV has announced that from the beginning of June 2023, BIDV would continue to reduce lending interest rates by 0.5%/year compared to the current interest rates for existing medium and long-term loans at BIDV. This is the second time BIDV has reduced lending interest rates for customers with existing outstanding loans at BIDVin 2023.

Previously, following the instructions of the State Bank of Vietnam on implementing the program of VND 120,000 billion for loans of social housing, worker housing, renovating and rebuilding old apartments, BIDV had spent a credit package of VND 30,000 billion for lending at a lower interest rate of 1.5-2% compared to the usual rate of banks.

In addition, from the beginning of the year, BIDV said that it had implemented credit packages with a supporting interest rate of 2% per year compared to normal lending rates to support businesses accessing loans at reasonable fees.

Similarly, from the beginning of the year until now, Vietcombank has reduced lending interest rates twice. The latest is the reduction from the beginning of May to July 31, 2023. Vietcombank decided to reduce up to 0.5%/year of the VND lending interest rate for all loans of individual and corporate customers.

Mr. Le Quang Vinh, Deputy General Director of Vietcombank, said that the number of customers with interest rate reducedwas estimated at 110,000, the size of the loan balance with interest rate reducedwas about VND 700,000 billion. He emphasized that the interest rate reduction was the consensus of the banks and the wishes and aspirations of most people and businesses.

At Agribank, in the 5th interest rate reduction since the beginning of the year, Agribank continues to reduce lending rates by 0.5%/year for existing medium and long-term loans of customers until the end of September 2023. It is estimated that about 2 million customers are supported, with the total amount reduced under this program being more than VND 1,000 billion.

In addition, with short-term credit, Agribank is also implementing many preferential interest rate programs. The lowest is only 4.5%/year depending on the loan term and borrower.

Since the beginning of June, VietinBank has announced a credit package of VND 35,000 billion for preferential loans with interest rates lower than 2%/year for businesses operating in the fields/industries with large import-export turnover such as rice, aquaculture, agriculture.

Therefore, VietinBank has an attractive preferential interest rate for import and export enterprises only from 6%/year for VND and only 3.5% for USD.

For other businesses, VietinBank has also adjusted the lending interest rate to supplement working capital with a loan package size of up to VND 100,000 billion. A representative of VietinBank said that the bank was striving to reduce costs and further reduce deposit interest rates to reduce lending rates. In addition, VietinBankwas also promoting implementation regulations on debt structure, debt extension, disburse an interest rate support packageof 2%.

Currently, state-owned commercial banks account for 44% of the market share, so successive moves to reduce interest rates of these banks are considered to have an impact and effect on credit flows in the market.

According to the money market report of SSI Securities Company, credit demand still increased, although interest rates had decreased significantly after the State Bank had reduced operating interest rates three times since the beginning of the year.

According to SSI estimates, the average lending interest rate (excluding incentives) was currently around 12.5%/year – down about 220 basis points from the end of 2022, but still about 200 basis points higher compared to 2019.

Moreover, SSI said that although commercial banks had all lowered lending rates to stimulate investment and consumption demand, this interest rate was mainly applied to new loans and only a few commercial banks, mainly state-owned commercial banks, reduced interest rates on existing loans.

Talking to the press, SBV Deputy Governor Pham Thanh Ha said that the credit growth of state-owned commercial banks was only about 35% compared to the credit room assigned by the State Bank, while the private banking group had implemented about 50% of the credit roomassigned. This showed that the capital absorption capacity of the economy was weak, so there was still room for growth.

By Huong Diu/ Binh Minh

Related News

Agricultural, forestry and fishery exports “reach the target” early

Agricultural, forestry and fishery exports “reach the target” early

VCN - According to a report from the Ministry of Agriculture and Rural Development, the export turnover of agricultural, forestry and fishery products in November 2024 is estimated at US $5.3 billion, up 13.9% compared to November 2023. It is notable that it not only “reaching the finish line” early, the agricultural sector also exceeded the annual plan by over US $ one billion.
Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

Credit continues to increase at the end of the year, room is loosened to avoid "surplus in some places - shortage in others"

VCN - Credit demand continues to increase at the end of the year, thereby helping banks compete through continuing to adjust interest rates appropriately.

Latest News

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses and land for the right purposes, and to avoid loss and waste.
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.

More News

Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Vietnamese products: Conquering foreign customers in supermarket systems

Vietnamese products: Conquering foreign customers in supermarket systems

VCN - According to the Ministry of Industry and Trade, the proportion of Vietnamese goods in distribution channels currently reaches more than 80% in supermarkets and 60% or more in traditional retail channels. For many retailers, Vietnamese goods have become a growth driver as they not only do business successfully in the domestic market but also export.
Answering many questions from businesses at dialogue conference on tax and customs policies

Answering many questions from businesses at dialogue conference on tax and customs policies

VCN - Many opinions and recommendations related to tax and customs issues were raised by the business community at the dialogue on tax and customs policies and administrative procedures in 2024, organized by the Ministry of Finance.Representatives of the Ministry of Finance, the General Department of Taxation, and the General Department of Customs provided specific responses, and affirmed that they will continue to research and advise on the assessment, review, and amendment and supplementation of appropriate regulations.
Enterprises face difficulties in tax refunds due to partners closing

Enterprises face difficulties in tax refunds due to partners closing

VCN - On December 13, at a dialogue conference on tax and customs policies and administrative procedures organized by the Ministry of Finance in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), enterprises proposed solutions to many problems related to tax policies such as VAT refunds, tax declaration procedures, electronic invoices, etc.
Strengthen the management and use of electronic invoices for e-commerce

Strengthen the management and use of electronic invoices for e-commerce

VCN - Prime Minister Pham Minh Chinh requested ministries, branches and localities to strengthen the management and use of electronic invoices and improve the efficiency of tax collection for e-commerce.
Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

VCN - The Ministry of Finance has just completed the proposal to draft the Personal Income Tax Law (PIT) and officially solicited public comments. By amending and supplementing nearly 90% of the total number of articles of the current PIT Law, the Ministry of Finance has submitted to the Government for permission to propose the draft PIT Law to replace the PIT policy system. The project is expected to be approved by the National Assembly in May 2026.
Read More

Your care

Latest Most read
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses an
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN - With the determination to accomplish the revenue collection to create resources for economic development under the Prime Minister's direction, the entire Tax sector has made efforts to perform the revenue collection in the last days of 2024.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN - The Ministry of Finance has issued Document No. 13213/BTC-DT to publicize the progress of public investment disbursement of key national projects.
Mobile Version