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VietNamNews

Local banks continue to cut interest rates

Update: December, 08/2014 - 08:06

Between now and year-end, the SBV will closely monitor the market and ensure comprehensive policies for monetary stability, especially on foreign currencies and exchange rates.— Photo batdongsanonline

HA NOI (VNS) — The total outstanding loans of Viet Nam-based credit institutions increased by 10.22 per cent in the first 11 months of 2014 over that of end-2013.

The State Bank of Viet Nam (SBV) also revealed on Friday that lenders had actively reduced interest rates for existing dong loans.

Last November 16, loans with annual interest rates of more than 15 per cent accounted for 3.95 per cent of all loans, which was less than the 6.3 per cent recorded at the end of last year.

The ratio of loans with interest rates of more than 13 per cent likewise fell from 19.72 per cent to 11.1 per cent.

The SBV said it would continue to ask commercial banks to slash lending rates further to below 13 per cent. Interest rates declined by up to two per cent this year and were backing production and business activities while assuring national goals of controlling inflation and stabilising the monetary market.

Loans were focused on Government-prioritised areas and banking system liquidity remained healthy, with deposits at credit institutions expanding by 13.33 per cent in 2014 over that of end-2013, it added.

Between now and year-end, the SBV will closely monitor the market and ensure comprehensive policies for monetary stability, especially on foreign currencies and exchange rates.

It will also provide further support for businesses and speed up credit institution restructuring and bad debt resolution to ensure systematic security and enable an overall lending growth of 12 to 14 per cent for 2014. — VNS



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