VOV.VN - Local firms are facing an increasingly volatile business landscape following the recent decisions by commercial banks to raise deposit and lending rates.

The State Bank of Vietnam on October 24 decided to revise up several interest rates by 1%, starting from October 25.

Last week, the State Bank of Vietnam decided to put Saigon Joint Stock Commercial Bank (SCB) under special control and revamped the bank’s management to help the bank stabilize its operation, but analysts said the recent problem at SCB does not have any potential consequences on the banking system.

The State Bank of Vietnam (SBV) will keep the current deposit interest rates and lending rates unchanged until the end of this year to ensure the banking system’s liquidity and benefits for depositors.

The Ho Chi Minh City People’s Committee has made several suggestions for the Ministry of Finance’s decree to support businesses and individuals affected by the COVID-19 pandemic, including ensuring bank lending rates are no more than 2% higher than deposit interest rates.

Domestic banks will continue striving to ensure business performance and deliver on commitments to investors while supporting clients amid difficulties this year.

The Vietnam Bank for Agriculture and Rural Development (Agribank) on July 15 said it will cut lending rates in Vietnam dong for the fifth time.

Most banks have agreed to cut the lending rate for enterprises hard hit by the COVID-19 pandemic from this month until the end of this year.

Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has requested that credit growth be achieved in tandem with improving credit quality, with a focus on manufacturing and priority areas.

The Government has issued a new decree aiming to promote the development of social housing.