|
Central bank vows measures against cap breach
The State Bank of Vietnam (SBV) will take necessary measures against any banks that continue to break the 14 percent deposit interest rate cap set in December last year, the central bank told Tuoi Tre.
The limit was previously agreed between commercial banks and SBV after an interest war had broken out late last year, which was sparked by Techcombank, or the Vietnam Technological and Commercial Joint Stock Bank, hiking its maximum rate to 17 percent plus a 0.6 percent bonus.
The central bank stepped in and, together with the Vietnam Banking Association, ordered Techcombank to roll back the hike to bring a truce.
SBV also said it will introduce a package as instructed by the central government to gradually bring down deposit and lending rates.
Commercial banks are now quoting deposit rates at 14 percent a year but in fact offering two percent higher to depositors. Some even pay 17 percent per annum for big deposits, thus elevating lending rates up to 20 percent, a level experts say inhibits domestic production and subsequently hikes prices.
Many banks have openly asserted interest rates will ease off only if there is intervention from SBV.
In a related development, local businesses have complaint too high an interest rate has hurt their performance and shrunk their profits.
The Lam Dong Minerals and Building Materials Join Stock Company cited a 19.14 percent fall in profits in the fourth quarter last year when interest rates surged, entailing rising input costs.
Similarly, the Sao Vang Rubber Joint Stock Company posted a VND4 billion (US$193,115) slump in profits during the same period due to rising interest rates and volatile forex rates.
Meanwhile, the An Pha S.G. Petro Joint Stock Company suffered from the same ordeal when reporting a 87 percent plunge in after-tax profits despite a doubled revenue.
tuoitrenews
|
