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Bank execs face sack for breaching interest cap
The State Bank of Vietnam (SBV) - central bank - required that dismissal be meted out to two directors of two bank branches for offering interest rates on deposits at a higher rate than allowed.
SBV Governor Nguyen Van Giau made the statement at a conference on Friday in Ho Chi Minh City, where he was informed of the wrongdoings at the two commercial banks: Phuong Tay (Western Bank) in Can Tho province, and Kien Long (Kienlong Bank) in Kien Giang Province.
During an inspection on Thursday, the central bank’s inspectors found that the Hanoi branch of Phuong Tay mobilized saving deposits at a rate of 17.8 percent per year.
In another check by the inspectors last month, the Dak Lak branch of Kien Long was found offering a 15.7 percent interest rate per annum for one-month savings.
These rates exceed the maximum interest rate of 14 percent per year for deposits mobilized in dong stipulated in Official Letter No.9779/NHNN-CSTT dated December 14, 2010 by the SBV Governor.
Reports on the violations must be submitted to the governor bank before March 10, the central bank asked.
The leaders of the two banks were also asked to make a written commitment not to repeat their infringements.
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