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SBV demands strict compliance in foreign-currency mobilization
The Saigon Times Daily
Friday,  Sep 15, 2017,21:53 (GMT+7)

SBV demands strict compliance in foreign-currency mobilization

The Saigon Times Daily

HCMC – Governor of the State Bank of Vietnam Le Minh Hung has issued Document 7295/NHNN-TTGSNH ordering credit institutions and foreign bank branches to strictly comply with regulations on capital mobilization in foreign currency.

The governor asks credit institutions to strictly control credit growth in foreign currency, and keep the ratios of credit to mobilized capital in foreign currency at appropriate levels, balance mobilization and lending, and tighten risk controls on lending in foreign currency.

The move is to meet the central bank’s regulations and the governor’s directives on the safe operation of credit institutions, according to VnEconomy.

Credit institutions must comply with the savings interest rates prescribed in Circular 06/2014/TT-NHNN and Decision 2589/QD-NHNN of the central bank. They are told not to use any technical measures for breaking the interest rate cap.

Currently, the interest rate for U.S. dollar deposits is capped at 0%, while a few other currencies are limited at less than 1% a year.

Credit institutions are responsible for inspecting their operations on their own. If their violations on mobilization interest rates are found at certain branches or offices, they should find ways to cope and strictly penalize the heads of these branches and agencies responsible.

The central bank also requests credit institutions to implement promotion programs in capital mobilization and lending in line with legal regulations, and save on advertising, promotion and customer care costs as much as possible in a bid to ensure their business efficiency.

The governor demands the central bank’s provincial and municipal branches instruct local banks to strictly observe the regulations on the mobilization interest rate in foreign currency.

The Bank Supervision and Inspection Agency under the central bank, and its branches have been inspecting credit institutions since September 12.

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