HANOI, Aug. 11 (Xinhua) -- Lending interest rates in Vietnam will drop sharply in the second half of 2023 as capital costs of commercial banks are falling, according to local experts.

The average deposit interest rate for 12-month term is forecast to decrease to 6.0-6.2 percent per year in the second half of 2023 due to the impact of four policy interest rate cuts of the central bank and slow credit growth in the first half of 2023, local newspaper Vietnam News reported on Friday, citing VNDirect.

The government will also further promote public investment, thereby injecting more money into the economy, while the State Bank of Vietnam still has room to loosen monetary policy, the newspaper said.

At the end of July this year, the 12-month deposit interest rate of state-owned banks dropped to 6.3 percent per year, down 1.1 percentage points compared to the beginning of the year, according to the company's analysts.

Meanwhile, 12-month deposit interest rates of private banks range from 6.3 percent to 7.0 percent per year and average at about 6.7 percent per year, down nearly 1.6 percentage points compared with the beginning of the year.

In the group of private banks, deposit interest rates decrease most significantly by 0.3-0.7 percent per year in some banks such as VIB, TPBank, LPBank, Sacombank, SeABank, VPBank, SHB and OCB, according to analysts.

The SBV has continuously asked credit institutions to minimize costs and stabilize lending interest rates to support business recovery and development, the newspaper reported.

The central bank set this year's credit growth target for banks at 11 percent, but total outstanding loans in the economy increased by only 3.36 percent as of June 15 compared to the end of 2022, the lowest level for the past 10 years. Enditem

Related

Go to Forum >>0 Comment(s)