The Prime Minister has instructed banks to publicly disclose lending interest rates by April 10 in order to improve access to capital and reduce bad debts in the banking system. Despite a decrease in interest rates in the first quarter of the year, businesses still faced challenges in obtaining financing, leading to an increase in bad debts. Credit growth during this period only reached about 0.9%.
The Ministry of Planning and Investment highlighted that businesses still faced challenges in accessing capital, even with a decrease in interest rates. This was due to various reasons such as lack of transparency and uncertainty around lending policies. In response, the Prime Minister has instructed banks to disclose lending interest rates and information on credit packages before April 10. Failure to comply will result in severe punishment by the State Bank.
This is not the first time that the Prime Minister has requested banks to announce lending interest rates for transparency and ease of choosing a bank for borrowing. The Deputy Governor of the State Bank emphasized the importance of publicizing interest rates as an operating discipline that all banks must adhere to during a banking industry conference. The announced interest rates will be averages, not specific rates for individual borrowers or businesses.
Some banks have already implemented this requirement, including Sacombank, ACB, VIB, BIDV, Agribank, Hong Leong, Agricultural Bank of China, Maybank, First Commercial Bank, FE Credit and others foreign banks like these mentioned above. Additionally, the Prime Minister has instructed the State Bank to find solutions to reduce lending interest rates and increase access to credit capital while also reducing costs simplifying procedures and promoting digital transformation in the banking industry.
Moreover, the Prime Minister has directed state-owned commercial banks like Sacombank and Agribank among others to study credit packages with preferential interest rates for buyers and investors of social housing projects; they are also encouraged to consider lowering interest rates and simplifying procedures for VND 120 billion support package for social housing loans initiative aimed at providing opportunities for low-income groups purchasing homes or benefiting from renting options
