Accordingly, it will not apply the regulations on the percentage of capital used to create rotation and harmonization of capital between market 1 and market 2 as well as between the banks with redundant capital or insufficient capital, in order to help the banks short of capital to increase credits and lower their lending interest rates.

The State Bank of Vietnam will continue to maintain the ceiling mobilization interest rates for the Vietnam dong at 14 percent per year with the aim of reducing the loan interest rates for the production sector to between 17-19 percent per year. It will also continue to keep the ceiling interest rates for mobilized foreign currencies.

In a move against ‘dollarization’ the State Bank will tighten the mechanism for lending foreign currencies and increase the rate of compulsory reserve in foreign currency with a view to controlling foreign currency credit growth.