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Commercial banks implements SBV Governor’s directives on interest rates
In response to the SBV Governor’s guidance at the conference on key tasks of the banking sector in the final months of 2011 and Directive No. 02/CT-NHNN on September 7 to redress problems related to the implementation of the regulations on the VND and USD mobilizing rates by credit institutions and foreign bank branches, commercial banks have promptly taken action to adjust their own interest rate policy. 1. Mobilizing interest rates:
By September 8, 34 out of 42 commercial banks issued documents to guide their entire institutions. Accordingly, these commercial banks instruct their branches to strictly follow the SBV regulations on mobilizing interest rates in VND and foreign currencies and prohibit any additional payment out of the set interest rates for customers’ deposits. 20 commercial banks (The Joint Stock Commercial Bank for Foreign Trade of Vietnam, the Vietnam Bank for Industry and Trade, the Bank for Investment and Development of Vietnam, the Vietnam Bank for Agriculture and Rural Development, the Vietnam Export – Import Joint-Stock Commercial Bank, the Ocean Joint - Stock
Commercial Bank, the Nam Viet Joint-Stock Commercial Bank, the An Binh Joint-Stock Commercial Bank, the Viet Nam Thuong Tin Joint-Stock Commercial Bank, the Tien Phong Joint-Stock Commercial Bank, the Petrolimex Group Joint-Stock Commercial Bank, the Southeast Asia Joint-Stock Commercial Bank, the Global Petro Joint-Stock Commercial Bank, the Orient Joint-Stock Commercial Bank, the Sai Gon – Ha Noi Joint-Stock Commercial Bank, the Vietnam Technological and Joint-Stock Commercial Bank, the Maritime Joint-Stock Commercial, the Prosperity Joint-Stock Commercial Bank, the Vietnam International Joint-Stock Commercial Bank, and the Bao Viet Joint-Stock Commercial Bank) issued guidance on supervision and treatment of violations, including (i) requiring their branches to proactively detect cases of unfair competition and violation of mobilizing interest rates in VND and USD; inform the SBV provincial and municipal branches and their Head Offices of these cases for report to SBV; (ii) The Head Offices enhance their supervision on the mobilizing interest rates of their branches and take strict sanctions against managers of those branches and transaction bureaus and staffs detected to violate and fail to abide by the SBV Governor’s directives.
The remaining 8 commercial banks are preparing documents on interest rate guidance to be circulated in their entire institutions very shortly. 2. Lending interest rates:
Before the date of the SBV conference on key tasks of the banking sector in the final months of 2011, 5 commercial banks, namely the Bank for Investment and Development of Vietnam , the Sai Gon – Ha Noi Joint-Stock Commercial Bank, the Prosperity Joint-Stock Commercial Bank, the An Binh Joint-Stock Commercial Bank, and the Vietnam Export – Import Joint-Stock Commercial Bank, decided to cut their lending interest rates down to 17-19% p.a. (Down by 1-2 percentage points p.a.) for agricultural and rural development and exporters.
By September 8, under high consensus at the conference of the 12 leading commercial banks on lowering interest rates, 6 commercial banks (including the Joint Stock Commercial Bank for Foreign Trade of Vietnam, the Vietnam Bank for Industry and Trade, the Housing Bank of Mekong Delta, the Military Joint-Stock Commercial Bank, the Lien Viet Post Joint-Stock Commercial Bank, and the Maritime Joint-Stock Commercial Bank ) reduced their lending interest rates to 17-19% p.a. for the production and business sector.
Some commercial banks (such as the Vietnam Bank for Agriculture and Rural Development, the Vietnam International Joint-Stock Commercial Bank, the Vietnam Technological and Joint-Stock Commercial Bank, so on and so forth ) are scheduling to reduce the lending interest rates to 17-19% for production, agricultural and rural development, and exporters.
SBV
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