BIDV, Vietinbank and VCB simultaneously lower lending rates
Complying the direction of the prime minister on adjusting lending rates for enterprises and the direction of the Governor of the State Bank of Vietnam (SBV) on reducing lending rates to remove difficulties for production and business activities and support the market, in the evening of April 28th 2016, the Commercial Joint Stock Bank for Industry and Trade of Vietnam (Vietinbank) announced to lower lending rates. Specifically, for the projects having good assessment, lending rate will be lowered by one percent per annum compared to the current level. In addition, lending rates to production and business plans on medium and long-term will not exceed 10 percent per annum.
After Vietinbank, two major banks including the Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) have also announced lower lending rates.
Specifically, from April 29th 2016, BIDV lowered borrowing interest rates by up to 0.5 percent for good customers borrowing capital for business and production. In addition, medium and long-term lending rates will not exceed 10 percent per annum for good customers borrowing capital for business and production purposes.
According to BIDV, in the recent time, the bank has focused on restructuring credit portfolio towards tightly controlling the scale of lending to real estate sector, build-operate-transfer projects, securities business and the sectors with high risk factor. In addition. BIDV has focused on developing credit in the sectors with low risk factor and those benefit from integration policies, etc.
Meanwhile, Vietcombank has adjusted the preferential medium and long-term lending rate in dong to a maximum of 10 percent per annum within a duration of up to one year in order to support enterprises directly doing business and production. At the same time, Vietcombank has launched a budget package of about 300 billion dong to support enterprises in business plan and improving credit quality.
Since the beginning of the year, deposit rates on the market have tended to slightly increase. Some banks have applied deposit rate of over seven percent per annum on long terms and that has caused lending rates to be under a pressure of inching up.
According to data of SBV, as of late February 2016, lending rates of credit institutions were popular at six to nine percent per annum on short terms and nine to 11 percent per annum on medium and long terms.