SBV Cut Certain Rates

Diep Nguyen

14:43 13/09/2019

BizLIVE -

In order to contribute to managing inflation, stabilizing macro economy, and supporting for business and economic growth, Governor of the State Bank of Vietnam (SBV) decided to reduce certain rates.

SBV Cut Certain Rates
In order to implement the Resolution of National Assembly and Government on solutions on socio – economic development for 2019, the SBV has conducted several synchronous measures to accelerate the liquidity of credit institutions to supply sufficient demand of capital for the economy, stabilize interest rates, foreign exchange and forex market, contributing to curb inflation, maintaining macro economy and support for economic growth at an appropriate level.
The Government and Prime Minister also instructed relevant ministries and industries to implement synchronous solutions to accelerate economic growth in line with the set objective. On the basis of assessing macroeconomic situation and money market, SBV Governor issued decision to cut certain rates.
Specifically, Decision 1870/QĐ-NHNN dated September 12th 2019 on reducing certain interest rates including annual refinancing rate (from 6.25%p.a to 6.00%p.a), rediscount rate (form 4.25%p.a to 4.00%p.a), overnight electronic interbank rate and rate of loans to offset capital shortage in clearance between the SBV and credit institutions (from 7.25%p.a to 7.00% p.a).
Concurrently, for the aim of effectively implementing the Guidance of Government and Prime Minister, SBV Governor required credit institutions, foreign bank branches, SBV municipal branches to decisively conduct the solutions on monetary policy and banking operations in line with Decision 1870/QĐ-NHNN dated September 12th 2019 of the SBV; to strictly comply credit solutions defined in this Decision and to concentrate on further solutions as follows:
For credit institutions and foreign bank branches:
- To strictly implement regulations and guidance of the SBV on saving interest rates applied to organizations and private depositors; to strictly comply the guidance on short term lending rates applied to borrowing customers to effectively supply capital to certain sectors and industries.
- To proactively balance between capital mobilization resource and capital usage to ensure the liquidity; efficiently implement various solutions to reduce operational cost, improve business effectiveness to create foundation for cutting lending rates of priority sectors, production and business; to apply proper fees to share difficulties with customers.
For SBV municipal branches
- Proactively guide and direct local credit institutions to synchronous and effectively conduct SBV solutions on monetary policies, credit and banking operations
- Accelerating banking supervision and inspection of credit institutions in the locations on their conduction of monetary policy and credit solutions, and banking performance.
SBV Governor requires General Directors (Directors) of Credit institutions, foreign bank branches; Directors of SBV municipal branches are responsible for guidance and monitoring the implementation of this Document and make periodical report on implementation results as well as the application of new interest rate mechanism to SBV starting from report period of September 2019.

DIEP NGUYEN

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