Banks Required to Report Interest Rates Weekly
Banks are required to send their reports on interest rates to the State Bank of Vietnam (SBV) before 3:00 p.m. every Thursday. This is a noteworthy content of the Document No. 4533/NHNN-CSTT issued by the State Bank of Vietnam (SBV) which requires credit institutions and foreign bank branches to make weekly reports on interest rates on loans and deposits in Vietnamese dong.
This move will help monitor mobilising and lending rates in VND at credit institutions and foreign bank branches for better monetary policy management. This new method will help supervise interest rate violations.
According to current regulations, ceiling rates on deposits with maturity terms of less than 12 months is 9 percent per annum while longer terms are floating. Currently, some banks reportedly collude with depositors to place money with medium and long terms but they are free to withdraw their money with interest rate of 9 percent per annum rather than rates applied to demand deposits.
LM
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