The State Bank of Vietnam (SBV) could delay the roadmap of setting a maximum rate of short-term capital to provide medium- and long-term loans outlined in Circular No.22/2019/TT-NHNN dated November 15, 2019.
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Le Trung Kien, representative of the Inspection and Supervision Agency at the SBV, stated that the SBV is studying and considering postponing the roadmap to apply a maximum rate of short-term capital banks can use for medium- and long-term loans.
"Given the current situation, it is likely that the SBV will continue to postpone this roadmap implementation for more than a year so that credit institutions could have more adequate resources to support their consumers and aid post-pandemic recovery,with lower lending costs and preferential rates,” Kien shared at a seminar organised by the Vietnam Banking Association on November 24.
The roadmap was already delayed once last year by the SBV.
Specifically, last year, the SBV allowed to maintain the rate of 40 per cent until the end of September 30, 2021 and gradually lower thereafter. From October 1, 2021 to September 30, 2022, the above rate was set to decrease to 37 per cent; from October 1, 2022 to September 30, 2023 was set to be 34 per cent; and reduced to 30 per cent from October 1, 2023.
In 2019, the SBV announced a draft circular amending and supplementing Circular No.22 on limits and prudential ratios in banking operations, in which it proposed two plans to delay the roadmap.