State Bank of Vietnam head office. Photo: VGP

According to the SBV report on the performance of the banking industry in the first six months of the year and the implementation of tasks for remaining months of 2023, by the end of June, the average deposit and lending interest rates of new transactions in VND of commercial banks decreased by about 1.0% per year compared to the end of last year.

The domestic foreign currency market and exchange rate were relatively stable, market liquidity was smooth, and legal foreign currency needs were fully met, said Dao Minh Tu, Deputy Governor of the State Bank.

“In the first months of this year, amid difficulties two years after the COVID-19 pandemic and the global economic uncertainties, the bank's credits also suffered heavily. However, there remained big targets that the State Bank can ensure: the macro-economy was stable, inflation was controlled as expected, the value of money was maintained stably, and interest rates managed aggressively,” Mr Tu said. 

The State Bank said that cutting the interest rate four times in a row in recent months is a necessary step to increase access to capital and remove difficulties for people and businesses under the Government's direction.