HCMC - The State Bank of Vietnam (SBV) will encourage or restrict credit growth at banks next year, depending on whether these banks have lowered interest rates as committed or not.

The central bank issued a dispatch to credit institutions on cutting lending rates and exempting bank service fees for customers affected by Covid-19. The SBV leader ordered the heads of banks to commit to reducing lending rates in line with the plan they had earlier registered with the Vietnam Bank Association to share with businesses. Their rate reduction program must be conducted effectively, while their rate reduction and fee exemption policies should be informed to customers, said SBV deputy governor Dao Minh Tu. On the final day of each month, banks must report their results in detail to the central bank, according to the dispatch. The central bank will enhance supervision on the implementation of the lending rate reduction. Earlier, in mid-July, at a meeting with the Vietnam Bank Association, 16 commercial banks agreed to lower lending rates for firms and residents to help them overcome the hardship caused by the pandemic, said Deputy Governor Tu. These banks committed to cutting the rates, equivalent to VND20.3 trillion, from July until the end of 2021.

By Dung Nguyen