Many commercial banks in Vietnam pledged to lower lending interest rates by 0.5 to 3 percentage points to support businesses amid falling demand and orders, Vietnam News Agency reported on Thursday.
A total of 16 banks had pledged to slash interest rates following the State Bank of Vietnam’s decision to expand the credit room, the news agency reported.
BIDV lowers the interest rates by 0.5 to 2.5 percentage points for lenders in priority groups including those affected by COVID-19, those working in export-import industries, foreign businesses, or individual lenders.
Vietcombank also slashes interest rates by 1 percentage point for 175,000 lenders with a total credit worth 500 trillion Vietnamese dongs (21.1 billion U.S. dollars).
The interest rates at banks are still high, the news agency said. The average rates range from 10 to 16 percent per year for unsecured loans, and from 10 to 14 percent per year for mortgage loans, the news agency reported.
According to the Vietnam Banks Association, the sharp increase in deposit rates by some commercial banks has caused fierce competition for deposits, creating instability for both depositors and lenders.