Vietnam central bank tells lenders to hold deposit rates, lower loan rates

HANOI : Vietnam’s central bank said on Wednesday it had told local commercial banks to keep deposit rates stable and seek to lower their lending rates to support economic growth.

The move is aimed at “implementing the government’s instruction to boost lending, securing an economic growth of at least 8 per cent this year,” the State Bank of Vietnam said in a statement.

It said banks needed to continue to cut costs, simplify procedures and be “willing to share part of their profit” to support business activities.

Banks need to funnel their lending to growth drivers, including consumption, exports, digital transformation and technologies, the central bank said.