Undertake the directives of the Government, the Prime Minister, and the State Bank of Vietnam (SBV) to lower lending rates and support production and business activities, the Co-operative Bank of Vietnam (Co-opBank) continue reduces lending rates for People’s Credit Funds (PCFs), effective October 20, 2026. This policy reflects Co-opBank’s proactive and responsible commitment to supporting the PCFs network, helping reduce funding costs, improve operational efficiency, and facilitate members’ access to credit for economic development.
Co-opBank has consistently prioritized providing capital to PCFs at appropriate interest rates, helping them maintain proactive funding arrangements and meet their members’ borrowing needs. In April 2026, Co-opBank reduced lending rates for PCFs by 0.3% p.a. and 0.5% p.a. for medium-term loans, maintaining these rates ever since. From October 20th, 2026, Co-opBank will further reduce lending rates by 0.4% p.a. for short- and medium-term loans to support credit expansion, loans to address temporary liquidity difficulties, and credit facilities supporting PCFs’ payment operations. This move continues Co-opBank’s longstanding commitment to supporting the PCFs network.
Building on the linkages within the cooperative banking system, capital source from Co-opBank enables PCFs to expand credit for production, business activities, household economic development, and improved local livelihoods. The latest interest rate reduction therefore represents tangible support for PCFs in managing funding costs while reinforcing Co-opBank’s role in supporting PCFs network.
With their strong local presence and deep understanding of community needs, PCFs play a vital role in channeling credit to rural areas, particularly to households, individuals, and small-scale businesses. Lower funding costs give PCFs greater flexibility in managing their funding, improving operational efficiency, and better serving their members. Co-opBank’s interest rate reduction therefore not only provides direct support to PCFs but also helps members use credit more effectively to sustain and expand their production and business activities.
As the central bank of the PCFs network, Co-opBank remains committed to coordinating capital flows, providing liquidity support, and strengthening linkages across the system. Alongside its interest rate policies, Co-opBank continues to enhance product and service quality, accelerate digital transformation, and optimize operations, helping build a strong foundation for the safe, efficient, and sustainable development of the PCFs network.
The lending rate reduction policy takes effect on October 20th, 2026. For loan and credit agreements signed before the effective date of the decision, Co-opBank and customers will continue to comply with the agreed terms or make amendments and supplements in accordance with applicable regulations.
By further reducing lending rates and maintaining funding support measures, Co-opBank reaffirms its role as the central bank of the PCFs network, standing alongside PCFs in fulfilling their mission to serve members, support local economic development, and contribute to sustainable growth.
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