In response to the information of appearing some credit institutions setting up interest rate of USD mobilizing higher than the ceiling set by the SBV, Governor of the State Bank of Vietnam issued documents No 3254/NHNN – TTGSNH and 3255/NHNN-TTGSNH to require credit institutions and branches of foreign banks to seriously comply with the SBV’s regulations and instructions on mobilizing interest rates, especially the interest rates of USD mobilization.
It is strictly forbidden for credit institutions to implement unfair competition and use technical method to set USD mobilizing interest rate higher than the applicable ceiling.
The credit institutions are required to accelerate the supervision, internal audit and proactively detect violations of mobilizing interest rates.
SBV Governor asks Banking Supervision Departments 1 and 2, and SBV municipal branches to closely monitor and accelerate supervision on credit institutions’ compliance of interest rate regulations in the location; promptly report to the SBV via Banking Supervision Agency and Office of the State Bank of Vietnam.
The State Bank of Vietnam do not approve nor permit those credit institutions, that violate the regulations on mobilizing interest rates, to open new branch, operation office, ATM, representative office, to provide additional service, business. The SBV also limits, suspends all or partially the operations of credit institutions which fail to comply with the regulations on mobilizing interest rates until they are able to terminate the violations.