Deposit rates still capped at 14 pct: central bank
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Dong deposit interest rates are still capped at 14 percent a year at the moment, the State Bank of Vietnam (SBV) has confirmed in a recent dispatch to its branch in southern Tien Giang Province.
The document, seen by Tuoitrenews, was issued in response to queries by the branch about the legality of the mobilization of deposits conducted lately by some commercial banks in the province.
The cap already includes bonuses in any form, the central bank says, adding the branch is required to check if those commercial banks have conformed to what the regulations stipulate.
The mobilization must be halted in case of any breach of the rules, it insists.
SBV sent out the strong message amidst challenges faced by commercial banks to attract deposits notwithstanding a market deposit interest rate of 18-20 percent per annum.
Deposits of the whole banking system rose 0.46 percent as of the end of last month while lending increased 5.01 percent, statistics against last year show.
Dong deposits in April alone slumped 1.84 percent compared to the previous month.
SBV has not figured out any breach of the cap up till now.
