TPBank's CEO: Interest rates and capital costs will certainly decrease in the near future

12/06/2023

"Definitely in the near future, interest rates will drop and capital costs will also decrease. Commercial banks have tried to save capital and maximum costs to have the opportunity to reduce interest rates, but the biggest one is in the interest component. The lending rate is the cost of capital," said TPBank's General Director.

Mr. Nguyen Hung - General Director of TPBank had a conversation with the press about the State Bank's decision to lower the operating interest rate.

- The State Bank has just announced to lower the operating interest rate by 0.5%. So how does this affect the capital mobilization space as well as the capital cost of banks, sir?

Mr. Nguyen Hung: "We consider the State Bank's moves to reduce the operating interest rate as quite appropriate. It sends a signal to the market that the operator wants the interest rate of the market to lower.

In the fourth quarter of 2022 and the first quarter of 2023, there were times when interest rates were high, but after the interest rate adjustment decisions of the State Bank, the interest rates decreased.

Only when market interest rates are lowered and capital costs are lowered will commercial banks be able to adjust lending rates for businesses and people, which will better support business development. economic.

- After the State Bank lowered the operating interest rate for the 3rd time in a row, what next move does TPB have, and what programs will it have to boost demand for loans?

Mr. Nguyen Hung: Deposit interest rates from institutions and banks have been climbing recently.

With this move of the State Bank, it is certain that in the coming time interest rates will be lowered and capital costs will also be lowered.

Commercial banks have tried to save capital and maximum costs to have the opportunity to reduce interest rates, but the biggest one in the loan interest rate component is the cost of capital.

If capital costs can be reduced, banks have the opportunity to significantly reduce lending rates.

TPBank will launch a number of support programs for people to borrow capital, lower lending interest rates to help businesses overcome difficulties.

- So how will this interest rate lowering affect the exchange rate / USD in the near future?

Mr. Nguyen Hung: Although the State Bank has lowered interest rates twice, the State Bank has made preparations and we can control it.

Many banks have actively controlled the exchange rate. Currently, the Fed or some central banks can pause the adjustment of the interest rate scale.

In a particularly difficult context, lowering interest rates is necessary and advisable.

- In your opinion, can this interest rate reduction stimulate the demand for loans in the near future in the context that credit demand is still growing very low?

Mr. Nguyen Hung: Currently, TPBank's credit growth is more than 5%. When interest rates are lower, customers have easier access to capital.

In the current period, income of enterprises is decreasing, financial costs are too high, which is also a hindrance for manufacturers as well as consumers. Once interest rates are more comfortable, then everything will be more favorable, investment decisions, production and business will be more feasible, we can expect credit to grow.

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