HCMC – The State Bank of Vietnam on Monday issued a dispatch requiring Housing Development Bank (HDBank) to limit its credit growth next year at under 10% as part of a punishment for breaking the deposit rate cap.
HDBank penalized for breaking deposit rate cap
By Truong Nam - The Saigon Times Daily
HCMC – The State Bank of Vietnam on Monday issued a dispatch requiring Housing Development Bank (HDBank) to limit its credit growth next year at under 10% as part of a punishment for breaking the deposit rate cap.
HDBank is not allowed to open any branches, transaction offices or ATM booths for 12 months starting from November 20 and to pay any commissions for deposit brokers, as stated in the dispatch signed by Tran Minh Tuan, deputy governor of the central bank.
The dispatch also requires HDBank to demote its deputy director and to fire the head of individual client and head of accounting under marketing and individual client departments.
The management and some employees of the branches found breaching the rate cap will be dismissed or demoted, including Tan Binh, Van Hanh and Nguyen Dinh Chieu branches.
The central bank in early October inspected and found breaches of the deposit rate cap of HDBank’s Tan Binh branch.