HCMC – Prime Minister Pham Minh Chinh has told the State Bank of Vietnam (SBV) to impose strict measures against commercial banks that are raising deposit interest rates, directing the SBV to inspect, penalize violations, and enforce compliance.
He signed Official Dispatch No. 19/CD-TTg instructing the central bank to look into those banks increasing deposit rates and take actions, including credit growth restrictions or license revocation, if need be. The central bank must report its findings by February 28.
While the Government seeks to stimulate economic growth through lending rate cuts, certain banks are still hiking rates. Authorities have issued warnings that these actions pose a risk to monetary policy and overall economic stability.
The SBV has been tasked with closely monitoring deposit and lending rates, ensuring banks cut costs, simplify lending procedures, and channel credit into key industries. The directive also calls for strict action against unfair interest rate competition.
Banks must regularly report their deposit and lending rates to the SBV to ensure transparency. Deputy Prime Minister Ho Duc Phoc will oversee the directive’s implementation, with the Government Office responsible for monitoring and reporting on compliance.
