The State Bank of Vietnam (SBV) has issued a directive according to which senior bank managers will be suspended for 3 years if their banks lend over the cap.
Central bank Governor Nguyen Van Binh addresses at teh recent conference of banking sector in Hanoi Photo: Tuoi Tre
The directive, which took effect yesterday, also said violating banks would also be scrutinized and suspended or limited from expansion and lending activities for a certain period of time.
Bank watchdogs and SBV’s branches will have to work harder and maintain a hotline for timely reports on the issue, the directive said.
In a recent meeting with banks, SBV’s governor Nguyen Van Binh said the central bank would do everything to reduce the lending rate to 17-19 percent per year such as keeping the interest rate ceiling of 14 percent per year on dong deposits and 2 percent per year on dollar deposits.
At the meeting, SBV also discusses ways to help capital-strained small banks such as providing VND10-15 trillion to finance 10 such banks or becoming the majority shareholder of these banks.