HCMC – The central bank’s governor has urged commercial banks to step up efforts to slash interest rates to ensure adequate credit for businesses, saying it would monitor and may impose sanctions on banks hiking rates.

Yesterday, November 22, the State Bank of Vietnam (SBV), the country’s central bank, wrote to commercial banks asking them to cut operating costs and non-essential expenses to have enough cash reserves and lower their lending rates.

They were also told actively support the economy by giving new loans while strengthening the credit risk management of those who borrow to invest in real estate, corporate bonds and stocks.

The manufacturing sector and industries deemed as the country’s economic drivers should be prioritized as directed by the prime minister.

Last week, the SBV ordered commercial banks to report on interest rate movements every week as swift interest rate hikes have fueled banks’ competition for depositors, driving up lending rates and leading to hesitation in applying for new loans among businesses.