Some commercial banks recently raise deposit rates, pushing up lending rates. (Photo: VNA)

The official dispatch underscores the government’s earlier directions to the State Bank of Vietnam (SBV) and financial institutions to ease borrowing costs and help businesses expand production. Despite these efforts, some commercial banks recently raised deposit rates, pushing up lending rates.

To address this, the PM instructed the SBV to immediately inspect and monitor banks that have increased deposit rates and ensure compliance with legal regulations and governmental policies. Violations will face strict penalties, including possible credit growth limits and license revocation. The SBV must report its findings by February 28, 2025.

The central bank was also tasked with closely supervising interest rate movements and taking decisive steps to lower lending rates, ensuring businesses and individuals can access affordable credit to drive production, stabilise the economy, and control inflation.

Financial institutions were directed to cut operational costs, streamline procedures, adopt technology, and restructure operations to enhance efficiency. They were also urged to share profits by reducing lending rates, aiding businesses and creating jobs while maintaining the banking sector's stability.

The official dispatch calls for prioritising credit in key sectors and growth drivers such as investment, consumption, exports, digital transformation, and green development while closely monitoring high-risk sectors to maintain safe and effective lending practices.

The SBV Governor will oversee the implementation and report directly to the PM, while Deputy Prime Minister Ho Duc Phoc will coordinate efforts between the SBV and relevant agencies to enforce the official dispatch./.