HCMC – The State Bank of Vietnam (SBV) has ordered its regional branches to inspect commercial banks and strictly handle violations of its interest rate reduction policy after some credit institutions recently increased deposit rates despite a broader downward trend in market rates.
In a statement, the SBV said it had maintained policy rates and implemented measures to stabilize market interest rates to support businesses and households. On March 30, it instructed credit institutions and foreign bank branches to take steps to stabilize interest rates.
At a meeting with commercial banks on April 9, the central bank requested lenders to lower deposit rates for new deposits with tenors of six months or longer, reduce listed deposit rates and cut lending rates to improve access to credit. Following the meeting, many banks lowered rates, contributing to a decline in market interest rates throughout April.
However, the SBV said some credit institutions had recently raised deposit rates, a development reported by local media.
To reinforce compliance, the SBV issued a directive on May 14 requiring regional branches to inspect commercial bank branches on their implementation of the interest rate reduction policy. A further directive issued on May 21 instructed regional branches to hold meetings with commercial banks, strengthen inspections and strictly handle any violations.
The central bank said it would continue monitoring deposit and lending rates, supervise the disclosure of lending rates on banks’ websites, and remain ready to provide liquidity support to the banking system while intensifying inspections and oversight of interest rate reductions.
