Need for synchronous policy support to continue reducing loan interest rates

At the conference on implementing solutions to stabilize deposit interest rates and reduce lending interest rates held on the afternoon of August 4, many experts said that recently, monetary and fiscal policies have been closely coordinated, typically accelerating public investment disbursement, an important factor in stimulating demand and supporting liquidity in the banking system.

Mr. Pham Toan Vuong, General Director of Agribank, spoke at the Conference. Photo: Hoang Giap

“Agribank expects the Government, the State Bank of Vietnam (SBV) and ministries and branches to continue to provide consistent and flexible guidance in managing fiscal and monetary policies; at the same time, promote support solutions from the banking sector, create conditions to maintain stable deposit interest rates, thereby gradually reducing lending interest rates, contributing to promoting growth and sustainable economic recovery,” Mr. Pham Toan Vuong, General Director of Agribank proposed.

Techcombank achieved credit growth of 10.6%.

According to Mr. Pham Quang Thang, Deputy General Director of Techcombank, in the first 6 months of 2025, implementing the direction of the Government and the State Bank on stabilizing the market and focusing on lending capital to support economic growth, Techcombank achieved a credit growth rate of 10.6%.

Loans mainly focus on corporate customers, contributing to promoting production and business and economic development. “Regarding lending interest rates, compared to the end of 2024, the average interest rate at Techcombank has decreased by about 0.5 - 0.6%. Regarding mobilization, growth reached nearly 6.5% in the first 6 months of the year. The average mobilization interest rate is basically stable in line with the direction of the State Bank of Vietnam to gradually reduce lending interest rates,” said Mr. Pham Quang Thang.

Following the direction of the Government and the State Bank, Techcombank continues to maintain a stable deposit interest rate level, not increasing it competitively at all costs. Instead, the bank focuses on restructuring capital sources, strengthening organizational restructuring, simplifying internal processes and promoting digital transformation to reduce operating costs, thereby lowering input capital costs. This is the basis for the bank to continue to control and gradually reduce lending interest rates, supporting customers and businesses to recover production and business.

Mr. Pham Chi Quang, Director of Monetary Policy Department, State Bank of Vietnam informed at the Conference. Photo: H.Giap

In recent times, the State Bank has managed the money market interest rates stably. Specifically, the State Bank has regulated monetary policy tools to promptly support liquidity for credit institutions (CIs), maintaining the operating interest rates; directing CIs to continue to reduce operating costs, digital transformation and other solutions to strive to lower lending interest rates; working and issuing many documents directing the CI system to stabilize deposit interest rates, reduce lending interest rates to promote economic growth under the direction of the Government and the Prime Minister.

In addition, the State Bank also directed credit institutions to publicly and transparently announce information on lending interest rates on their websites to provide information for customers to refer to when accessing loans. Thanks to that, the lending interest rate level continues to have a downward trend.

As of July 20, the average deposit interest rate for new transactions of commercial banks was at 4.18%/year, stable compared to the end of 2024; the average lending interest rate for new transactions was at 6.53%/year, down about 0.4%/year compared to the end of 2024.

The system of credit institutions has actively accompanied and supported businesses and people to recover and develop production and business in reducing interest rates and introducing many programs to reduce lending interest rates. Through monitoring the interest rates announced by commercial banks, from the beginning of 2025 to now, the listed deposit interest rates of commercial banks have basically remained stable compared to the end of 2024.

Mr. Pham Chi Quang, Director of the Monetary Policy Department (SBV), said that recently, the SBV has continued to implement credit management solutions to support economic growth and control inflation. Accordingly, to support credit institutions to have more room for credit growth, support economic growth to reach the target of 8% or more and in the context of controlled inflation in the first 6 months of the year, on July 31, the SBV adjusted the credit growth target for 2025 for credit institutions, ensuring publicity, transparency, and creating initiative in business for credit institutions.

At the same time, the State Bank directed credit institutions to increase credit growth safely and effectively, directing credit to production and business sectors, priority sectors and economic growth drivers under the direction of the Government and the Prime Minister; strictly control credit in potentially risky sectors; continue to implement solutions to facilitate customers' access to bank credit on the basis of simplifying procedures, loan applications, collateral... ensuring compliance with legal regulations.

The State Bank is ready to support liquidity to facilitate credit institutions to supply credit to the economy and promptly have appropriate monetary policy solutions.

Thanks to the above-mentioned synchronous management solutions, credit increased rapidly from the beginning of the year, improving compared to the same period in 2024. By July 29, system-wide credit increased by 9.8% compared to the end of 2024, a positive growth compared to the same period in recent years.

In the context of exchange rates and foreign exchange markets being under great pressure from fluctuations in the international market and US tax policies, the SBV representative said that the SBV manages exchange rates flexibly and appropriately, contributing to absorbing external shocks; intervenes in foreign currencies appropriately; and coordinates with other monetary policy tools to reduce pressure on exchange rates and foreign exchange markets.

Concluding the Conference, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha requested credit institutions to seriously implement the direction of the Governor of the State Bank of Vietnam in Directive No. 01/CT-NHNN dated January 20 on organizing the implementation of key tasks of the banking sector in 2025 to contribute to stabilizing the macro economy, controlling inflation, and contributing to achieving the growth target of 8% or more in 2025.

The Deputy Governor emphasized that credit institutions must strictly follow the direction of the Government, the Prime Minister and the State Bank, promptly deploy solutions to stabilize and strive to reduce deposit and loan interest rates.

The Deputy Governor also requested that credit growth by credit institutions must ensure safety and efficiency, focusing on production and business sectors, priority sectors and economic growth drivers; strictly control credit in potentially risky sectors. There is a policy to prioritize credit sources for private enterprises, especially small and medium enterprises, supporting industry enterprises, and innovative start-up enterprises to borrow to invest in machinery, equipment, new technology, green transformation, digital transformation, export credit, and supply chain credit.

"Units under the State Bank need to continue to closely monitor developments in deposit and lending interest rates, and the announcement of lending interest rates on the websites of credit institutions; continue to closely follow developments in the domestic and international markets, be ready to support liquidity to create conditions for credit institutions to supply credit to the economy and promptly have appropriate monetary policy management solutions," said Mr. Pham Thanh Ha.

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/can-ho-tro-chinh-sach-dong-bo-de-tiep-tuc-giam-lai-vay/20250805065549317