Interest rates on new loans have dropped to just 9.07%.

Deposit interest rates have fallen below the 7%/year mark.

According to Deputy Governor of the State Bank of Vietnam Pham Thanh Ha, the State Bank has implemented a comprehensive set of measures to strive for a reduction in lending interest rates to alleviate difficulties for businesses and individuals, in line with the directives of the National Assembly and the Government in Resolution 43 and Resolution 11. These measures include encouraging credit institutions to reduce costs to stabilize lending interest rates and support businesses in recovering and developing production and business activities.

To help businesses overcome difficulties, since March 15th, the State Bank of Vietnam has reduced the policy interest rate three times in a row.

Deputy Governor Pham Thanh Ha said that the State Bank of Vietnam has worked with commercial banks, requesting them to continue reducing interest rates to support businesses and the economy in recovering production and business activities in February and May.

The average interest rate for new VND loans from commercial banks is approximately 9.07% per annum (a decrease of 0.9% per annum compared to the end of 2022). (Illustrative image)

According to information from the State Bank of Vietnam, the current average interest rate on new deposits at commercial banks is approximately 6.1% per year (a decrease of 0.37% per year compared to the end of 2022).

6.1% is the average figure. In reality, after the third reduction in the policy interest rate (May 24th), the ceiling interest rate for terms under 6 months has fallen below 5%/year, with many banks "breaking" the 7%/year mark.

Specifically, the group of four major banks has stopped maintaining the 7% annual interest rate for long-term deposits.

At Vietnam Foreign Trade Commercial Bank ( Vietcombank ), the highest interest rate has dropped sharply from 7.2%/year to only 6.8%/year, applicable to terms from 12 months to 60 months. For a 6-month term, the interest rate is 5.5%/year. For terms under 6 months, the interest rate is 4.6%/year (3-month term), and 4.1%/year (1 and 2-month terms).

The Vietnam Investment and Development Bank (BIDV) also listed its highest interest rate at only 6.8%/year (for terms from 12 months to 60 months). 5.5%/year is applied to 6-month and 9-month terms. For 3-month and 5-month terms, the interest rate is 4.1%/year.

Not only state-owned banks, but also some joint-stock commercial banks have pushed their highest interest rates down below 7% per year, such as Vietnam Technological and Commercial Bank - Techcombank (6.7% per year for a 12-month term), DongA Bank (6.7% per year for a 12-month term),…

Interest rates on new loans have dropped to just 9.07%.

Lower deposit interest rates create good room to reduce lending interest rates.

Deputy Governor Pham Thanh Ha stated that credit institutions have been implementing measures to reduce lending interest rates in order to support businesses, individuals, and the economy in recovering production and business activities.

Based on the management and direction of the State Bank of Vietnam, interest rates have basically stabilized, and newly introduced interest rates have tended to decrease gradually in the first month of 2023.

The average interest rate for new VND loans issued by commercial banks is approximately 9.07% per year (a decrease of 0.9% per year compared to the end of 2022).

In addition to reducing interest rates on new loans, the banking system has also planned to reduce interest rates on existing loans.

Currently, commercial banks are expected to reduce lending interest rates by 0.3-0.5% for all existing customers, effective from May 29th. The group expected to reduce interest rates next week will be concentrated among private banks that have not adjusted interest rates on existing loans since the beginning of the year.

Looking ahead, Deputy Governor Pham Thanh Ha stated that the State Bank of Vietnam will continue to closely monitor domestic and international monetary developments, forecast inflation and market interest rates to manage interest rates appropriately in line with macroeconomic balance, inflation, and monetary policy objectives.

"The State Bank of Vietnam will continue to implement measures to encourage credit institutions to reduce costs in order to lower lending interest rates, thereby supporting businesses in recovering and developing production and business," Deputy Governor Pham Thanh Ha affirmed.

Source: https://www.congluan.vn/lai-suat-cho-vay-phat-sinh-moi-chi-con-907-post249580.html