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Tuesday, June 25, 2024

SBV wants bank deposit incentives banned

By Nguyen Tan

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HCMC – The State Bank of Vietnam (SBV), the central bank, has proposed prohibiting banks from offering depositors of Vietnamese dong those incentives contradicting regulations.

The proposed ban is aimed at improving transparency and regulation in the banking sector by specifying interest rates for deposits in Vietnamese dong made by both organizations and individuals at banks and foreign bank branches.

According to the proposal, banks would be mandated to publicly disclose deposit rates at authorized transaction points and on their electronic information platforms. Moreover, they would be strictly forbidden from providing deposit incentives that violate banking rules.

THe draft regulation also requires banks to adhere to maximum interest rates for deposits in Vietnamese dong, as determined by the SBV and varying by period and credit institution type.

These proposed measures are applicable to banks and foreign bank branches operating in Vietnam under the law on credit institutions, except for policy banks. Furthermore, the regulations extend to organizations and individuals depositing funds at banks.

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