The State Bank of Vietnam (SBV) on Dec. 16 asked its branches in provinces and cities to keep a close watch on the monetary market in order to promptly detect any unusual activity that may lead to market instability.
Earlier, at a meeting session on Dec. 14, members of the Vietnam Bankers’ Association (VNBA) agreed to cap deposit interest rates for Vietnamese dong at 14 percent per year. The move aimed to ensure that loan interest rates would not rise excessively and affect businesses as well as put pressure on inflation and economic growth.
In another move, the SBV decided to conduct inspections and declared punishment without mercy for any violations of the ceiling rate.
The central bank’s determination is in line with VNBA members’ expectation to avoid a ‘break’ in their unanimity.
The supervising role of the state management agency is expected to create a new level of stability in interest rates and gradually reduce loan rates.
According to SBV’s Hanoi branch, investigations into transactions at commercial bank branches showed that banks are complying with the agreed ceiling rate of 14 percent per year./.
Earlier, at a meeting session on Dec. 14, members of the Vietnam Bankers’ Association (VNBA) agreed to cap deposit interest rates for Vietnamese dong at 14 percent per year. The move aimed to ensure that loan interest rates would not rise excessively and affect businesses as well as put pressure on inflation and economic growth.
In another move, the SBV decided to conduct inspections and declared punishment without mercy for any violations of the ceiling rate.
The central bank’s determination is in line with VNBA members’ expectation to avoid a ‘break’ in their unanimity.
The supervising role of the state management agency is expected to create a new level of stability in interest rates and gradually reduce loan rates.
According to SBV’s Hanoi branch, investigations into transactions at commercial bank branches showed that banks are complying with the agreed ceiling rate of 14 percent per year./.
