Vietnam central bank orders lenders to cut costs, bonus, cash dividends to reduce interest rates

Xuan Thinh Tuesday | 03/31/2020 15:59

Vietnam central bank orders no bank cash dividends to support virus-hit firms. Photo courtesy of SBV

The State Bank of Vietnam has ordered local commercial banks to cut operating costs, bonuses, and even cash dividends to back interest rate cut, a move to support coronavirus-hit firms.

The Governor of the State Bank of Vietnam has just issued a directive encouraging the banking sector to strengthen ability to overcome the negative impacts caused by the world’s biggest public health crisis of the modern time.

The regulator asks local lenders to restructure repayment terms, exempt and reduce interest rates and fees to support virus-hit businesses by proactively review and cut operational expenses, salaries, bonuses, cash dividends.

The sector has contributed over VND160 billion to fight the pandemic. However, the outbreak has become more serious, affecting the production and business activities and the lives of people.

The central bank also said it is willing to intervene for a stable foreign exchange market, contributing to macroeconomic stability.

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