Deploying capital supply with reasonable interest rates for growth

(PLVN) - The State Bank will proactively operate tools to create conditions for commercial banks to have liquidity and capital without having to increase mobilized capital, thereby stabilizing input interest rates and having capital for lending.

March 10, 2025 05:48

Continue to reduce lending interest rates, creating conditions for businesses to expand investment. (Illustration photo: VnEconomy)

(PLVN) - The State Bank will proactively operate tools to create conditions for commercial banks to have liquidity and capital without having to increase mobilized capital, thereby stabilizing input interest rates and having capital for lending.

Unblocking capital stagnant in projects

According to the announcement, Vietcombank's average lending interest rate in February 2025 is 5.7%/year, equivalent to the average in January; BIDV is 5.56%, 0.1% lower than in January 2025. Agribank announced the average lending interest rate in January 2025 is 6%/year, but the interest rate for priority sectors under the direction of the Government and the State Bank (SBV) is only 4%/year.

Some joint stock commercial banks have higher average interest rates but there are different rates between businesses and individuals. Specifically,VIB announced the average lending rate for individual customers at 7.12%/year, while the average lending rate for corporate customers is only 5.9%/year; and at Eximbank, it is 7.62%/year and 5.75%/year, respectively.

In addition, some other banks announced much higher average lending rates such as MSB 6.4%/year;ACB 6.52%; Techcombank 7.09%/year; SEAbank 7.68%; The highest average lending interest rate belongs to 3 banks with interest rates above 9%/year, including SCB 9%/year, Saigonbank 9.03% and VietAbank 9.56%.

Recently, at a meeting to implement the Government's directives on interest rates, a representative of the State Bank said that after the Prime Minister's telegram regarding interest rate stabilization, the State Bank has stepped in, and commercial banks have also committed to stabilizing interest rates.

At the regular Government meeting in February 2025, Mr. Dao Minh Tu - Permanent Deputy Governor of the State Bank of Vietnam said that 12 banks have reduced interest rates, some banks have reduced very deeply. On average, the input interest rate of some banks has decreased by up to 0.7%. Many banks have launched credit packages that are very suitable for the current needs, especially consumer loans and social housing loans for the poor and low-income people.

Deputy Governor of the State Bank of Vietnam Dao Minh Tu informed about measures to reduce lending interest rates to boost economic growth to 8% in 2025. (Photo: VGP/Nhat Bac)

Implementing the measures of the State Bank, especially in reducing the lending interest rate level to promote economic growth by 8% or more in 2025, Permanent Deputy Governor of the State Bank Dao Minh Tu emphasized that this is a very big responsibility and the State Bank will proactively operate tools to create conditions for commercial banks to have liquidity and capital without having to increase mobilized capital, thereby stabilizing input interest rates and having capital for lending, serving the growth target.

Mr. Tu also said that the State Bank has also determined the capital level and responsibility in supporting the economy. In order to have a capital source that grows at least 2.5 million billion VND by the end of the year, it is necessary to find a way to make the capital flow faster and clear the capital sources that are difficult and blocked. Currently, the State Bank has coordinated with ministries and branches to present to the Government solutions to clear the capital sources that are stuck in projects.

Try to reduce lending rates

Mr. Tu said that to expand investment, interest rates must be lowered. In 2024, compared to the end of 2023, interest rates have decreased by an average of about 1.1%. Commercial banks with state capital, playing a leading role, have reduced their rates by 1.4%; some banks even reduced their rates by about 1.6% compared to the beginning of 2024.

In the first two months of 2025, the direction of the Government, the Prime Minister, as well as the banking sector with credit institutions must be in the direction of stability, continuing to reduce interest rates, on the basis of reducing costs of commercial banks in the most positive and highest way to have conditions to reduce lending interest rates. Along with that, implementing the direction of the Prime Minister, the State Bank has also stepped in to stabilize the initial interest rates after some banks increased deposit interest rates, in order to ensure a source of capital supply with reasonable interest rates for businesses to expand production investment.

“In the coming time, the State Bank will closely monitor interest rates to ensure that it can both create initiative for commercial banks and share with businesses by reducing costs and reducing lending interest rates for all terms. The State Bank will proactively manage its tools to create conditions for commercial banks to have liquidity and capital sources, without having to increase mobilized capital. This will also be one of the tools that the State Bank will proactively manage from now until the end of the year,” said Permanent Deputy Governor Dao Minh Tu.

Mr. Nguyen Quoc Hung - Vice President of Vietnam Banking Association said, with the growth target of 8%, the inflation rate can increase by more than 4% but still ensure below 5%, the rate of capital mobilization and lending to maintain the current level is reasonable and is a driving force to encourage businesses to invest. Because according to Mr. Hung, to reduce lending interest rates, we must reduce inputs, but this will be difficult for mobilization because it will reduce the attraction to residents, organizations and businesses. Mr. Hung said that if banks and credit institutions convert technology as well as apply science and technology to their activities, they can also reduce interest rates, but it will not be significant.

Source: https://baophapluat.vn/trien-khai-cung-ung-von-lai-suat-hop-ly-cho-tang-truong-post541907.html