Banks nod on 12 percent interest rate cap

 Members of the Vietnam Banks’ Association have agreed to cap the yearly interest rate for Vietnamese dong deposits termed over 6 months at 12 percent.

The bankers reached the consensus after they met on the issue in Hanoi on April 22 and Ho Chi Minh City on April 25.

The Association said the unanimous application of interest rate cap will help reduce the inter-bank transferral of capital to ensure each bank can maintain its capital for operation.

It also contributes to taming inflation and rising prices as requested by the Prime Minister and the State Bank of Vietnam , said the Association.

The bankers also decided to keep the yearly interest rate for US dollar deposits at 6 percent as agreed previously.

They suggested those ceiling interest rates be applied nationwide from April 29.

VNA

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