Easing the lending interest rate further by 0.5% and obtaining a high credit growth rate of 21-22% as instructed by the PM will not be an easy task.
From early 2017 till now, many commercial banks have almost reached the lending growth cap set by the State Bank of Vietnam (SBV) and are now requesting SBV to set a higher credit growth limit to ensure more room for lending.
The prospect of stable interest rate in 2017 is being supported by macro factors and policies such as reduced pressure in exchange rate and drastic measures in tackling bad debt, the National Financial Supervisory Commission said.
The State Treasury has mobilised nearly VND6.81 trillion (US$300.4 million) worth of Government bonds through an auction held by the Hanoi Stock Exchange (HNX) on April 12.
The HCM City People’s Committee plans to offer low-interest loans of no more than VND200 billion (US$8.8 million) with a maximum seven-year term to enterprises operating in the manufacturing or support industry.
It is normal for commercial banks to adjust their interest rates in accordance with their business strategies and market situation, said the State Bank of Vietnam.
Some commercial banks have entered a new interest rate hike race to lure medium- and long-term deposits, pushing the rate to a record high of more than 9% per year.
The gold market resumed stability shortly after a quick increase on March 16 after the US Federal Reserve (Fed) raised its interest rates, while the US dollar lost in value compared to other major currencies, which experts described as going against common rule.
Commercial banks can offer loans at preferential interest rate of less than 7% per year for high-tech agriculture projects.
The Vietnam International Bank (VIB) on February 20 officially issued certificates of deposit (CD) worth VND18 million and VND24 million for personal and corporate customers to meet their investment demands for deposit.
The State Bank of Vietnam has targeted keeping interest rate stable in 2017, however, the market’s developments in the first half of January 2017 show that lending rates are suffering from many pressures.
Strong efforts from the HCM City banking industry are needed to complete its mission in 2017, a high-ranking official has said.
The State Bank of Vietnam (SBV) has set a credit growth target of 18% for this year and it pledged to continue measures to keep credit growth suitable to the country’s economic development.
Vietnam should develop breakthrough policies to create momentum for the further development of electronic payments to meet the growth of e-commerce, said Pham Nguyen Minh, Director of the Institute for Trade Research and Development under the Ministry of Industry and Trade.
The Government’s Small- and Medium-Sized Enterprise Development Foundation (SMEDF) could provide support to startups in the form of venture capital and crowd funding, according to a draft decision.
VOV.VN - Vietnam’s economy has developed significantly in the third quarter but achieving this year’s target growth rate of 6.3-6.5% requires a doubling of efforts.
Deputy Prime Minister Vuong Dinh Hue has recently instructed relevant authorities to scrutinise the possible removal of the deposit interest rate cap on short-term deposits.
The director of a bank in HCM City says lenders have no plans as of now to increase loan interest rates, though they find it difficult to cut capital costs since deposit interest rates are tending to increase.
Some big credit organisations, including State-owned commercial banks, lowered their interest rates for short-term deposits as from September 26, according to the State Bank of Vietnam (SBV).
The Ministry of Planning and Investment is developing a plan on restructuring the economy by 2020 aiming to renovate the growth model towards improving efficiency and competitiveness of the economy.