Central Bank Lifts Discount, Re-discount Cap for Banks
The State Bank of Vietnam has recently removed the maximum discount and rediscount rates for credit institutions in Vietnam.
Accordingly, banks are allowed to identify discount or re-discount rates for clients be they other credit organizations or non-credit organizations who want to discount valuable papers issued by the banks or the government.
Additionally, the maximum discount rate for a client is not permitted to exceed 15 per cent of the equity of the credit organization that offers the discounting services.
The aforementioned rule is also applicable to foreign banks in Vietnam.
Previously, the discount and re-discount rate for a client was not allowed to surpass 15 per cent of the equity of a credit organization.
Vietnam Economic Times
Vietnamese
