Illustrative image (Source: VNA)
Hanoi (VNA) – The Governor of the State Bank of Vietnam (SBV) on May 6 issued documents requesting strict compliance with the rules on ceiling USD deposit interest rate which is capped at 0 percent annually.

The move came following reports about several banks raising USD deposit interest rates to a level higher than the regulated limit to attract foreign currency.

The Governor asked credit organisations and foreign banks to seriously abide by existing regulations on deposit rates, especially those for US dollars.

The documents also ban technical measures to surpass USD rates and unhealthy competition.

The SBV will not allow those credit organisations which are found in violation of the above rules to open new branches or representative offices, or launch new services.

Violators may also have some banking operations suspended if necessary.

The SBV Governor also asked for increased inspection and strict punishment for violations.-VNA