Banks to continually cut costs to aid COVID-19 affected firms

The State Bank of Vietnam has asked banks to further reduce operating costs in the remaining months of the year in order to continue lowering interest rates to support COVID-19 affected firms and individuals.

Under a directive released recently, the State Bank of Vietnam said banks must also cut salary, bonus and profit to further reduce the net lending interest rate for both existing and new loans, which it expected to contribute to the recovery of local production and business in the post-pandemic period.

As the COVID-19 pandemic remains unpredictable, banks have been also directed to promptly update official information on new developments of the pandemic to proactively formulate and apply appropriate response scenarios to ensure the banking system, especially the information technology and payment units, operate safely and smoothly.— VNS