In 2018, lending rates may fall further
(Updated at 10:54, 1/3/2018)
The reduction of lending rates in 2018 is considered a central task by the State Bank of Vietnam.
This is the opinion of the leaders of the State Bank of Vietnam (SBV) when discussing with the press about the focal points in managing monetary policy in 2018 of the SBV.
According to Deputy Governor Nguyen Thi Hong of the SBV, in 2018, the world and domestic economies are predicted to have favorable factors but also to overcome difficulties and challenges. Based on the objectives of the National Assembly, the Government and the macro-economic and monetary analysis, in 2018, the State Bank of Vietnam aims to increase total means of payment by 16%, credit by 17% with adjustment in accordance with the actual market situation.
Accordingly, the State Bank shall conduct a proactive, flexible, prudent monetary policy in close coordination with the fiscal and other macroeconomic policies to control inflation in line with the set target, to stabilize the macro-economy, contributing to support economic growth at a reasonable level; ensure the liquidity of credit institutions (CIs), stabilizing the money market and the foreign currency market.
In particular, the SBV will focus on: flexibly operating open market operations in line with market developments; operating interest rates in line with the macro-balance, inflation and the money market.
Deputy Governor Nguyen Thi Hong said that in 2018, based on the economic growth target of 6.5-6.7%, the average inflation rate of about 4% by the National Assembly, the Government and the monetary market assessment as well as banking activities, the State Bank has set credit growth target in 2018 at about 17% (lower than the figure of 18.17% in 2017), but there will be adjustments in accordance with the actual market situation.
Since the beginning of the year, the State Bank of Vietnam (SBV) has actively and flexibly issued the Circular amending the foreign currency lending regulations of credit institutions to resident borrowers to continue supporting export enterprises to reduce capital costs and the Circular stipulating limits and prudential ratios in the operations of credit institutions, in which the SBV has adjusted the schedule for reducing the maximum rate of short-term funds used for medium- and long-term loans, contributing to assisting credit institutions in operating stably and striving to reduce lending rates.
The Leader of the State Bank of Vietnam said that credit management will be directed towards controling credit size in line with the orientation and flexible adjustments to suit practical conditions, combined with improving credit quality, creating favorable conditions for accessing credit capital of enterprises and people, contributing to economic growth.
The SBV also requested credit institutions to join the SBV to deliver a strong message that the banking sector is striving to reduce lending rates in response to the Prime Minister's call. The SBV has reduced the OMO interest rate from 5% per annum to 4.75% per annum to support credit institutions to reduce their lending rates.
Huong Nguyen
News Later
News Older

Online Banking

ATM/POS locations

Exchange Rate
Updated at
Applied at Agribank Operations Centre

Agribank Contact Center