State Bank of Viet Nam has ordered credit institutions and branches of foreign banks to report their lending, capital mobilisation and interest rates in Vietnamese dong every month going forward.— Photo cafef.vn

HA NOI (Biz Hub) — State Bank of Viet Nam has ordered credit institutions and branches of foreign banks to report their lending, capital mobilisation and interest rates in Vietnamese dong every month going forward.

The reports must be submitted to the central bank's Monetary Policy Department on the 20th of every month, starting from June and lasting until the end of this year.

The move is aimed at cutting lending rates to support domestic businesses and production.

Many banks, such as ACB, Sacombank, VP Bank and Eximbank, have also lowered their deposit rates by roughly 0.1-0.2 per cent per year for the first time this year since the end of May.

This deposit interest rate reduction is expected to help banks further cut lending rates.

State Bank of Viet Nam Governor Le Minh Hung recently pledged that the banking system would try to cut the lending rate by roughly 1 per cent this year.

The central bank also affirmed it would regulate the inter-bank rates in accordance with the market interest rate. — VNS