Many commercial banks said that in the past time, they have managed to provide capital with reduced lending interest rates for some businesses during the peak season in business at the end of the year.
The State Bank of Vietnam (SBV) is cutting down a series of key interest rates by 0.25 percent-0.5 percent from June 19, which is expected to make a double impact on the economy thanks to stronger credit activities and higher liquidity.
By June 16, the credit growth of the banking industry merely reached 2.13 percent compared to the beginning of this year. Thus, in the first nearly six months of this year, credit growth was only half of that in the same period last year due to the serious impacts of the Covid-19 pandemic.
Even after commercial banks capped the deposit interest rate at 14 percent and cut lending interest rates, companies continue to complain of their inability to borrow capital at 21-24 percent per year.