In an effort to improve transparency and ease of borrowing, the Prime Minister has instructed banks to publicly disclose lending interest rates by April 10. A report from the Ministry of Planning and Investment revealed that interest rates decreased in the first quarter of the year, but businesses still faced challenges accessing capital, leading to an increase in bad debts in the banking system. Credit growth in the first quarter only reached about 0.9%.
To address these challenges, the Prime Minister has also requested banks to provide information on credit packages before April 10. Failure to comply will result in severe punishment from the State Bank. This is not the first time the Prime Minister has requested banks to announce lending interest rates for transparency and ease of choosing a bank for borrowing.
The Deputy Governor of the State Bank emphasized during a banking industry conference that publicizing interest rates is an important operating discipline that all banks must adhere to. The announced interest rates will be averages, not specific rates for individual borrowers or businesses.
Some banks have already implemented this requirement, including Sacombank, ACB, VIB, BIDV, Agribank, Hong Leong, Agricultural Bank of China, Maybank, First Commercial Bank and FE Credit. Additionally, the Prime Minister has instructed the State Bank to find solutions to reduce lending interest rates and increase access to credit capital while reducing costs, simplifying procedures and promoting digital transformation in the banking industry.
Furthermore, the Prime Minister has directed state-owned commercial banks and the State Bank to study credit packages with preferential interest rates for buyers and investors of social housing as well as lowering interest rates and simplifying procedures for VND 120 billion support package for social housing loans. This initiative aims to provide opportunities for low-income groups to purchase homes or benefit from renting options.