The State Bank of Vietnam issued a circular on March 3 to set the interest rate cap at 14 percent per annum on dong deposits.
|Transactions conducted at a Southern Bank branch in Ho Chi Minh City (Photo: SGGP)|
Under the regulation, credit organizations will offer interest rates for dong deposits held by individuals and organizations at no more than 14 percent per year, even on promotions.
People's credit funds will be allowed to apply for interest rates as high as 14.5 percent.
Credit organizations will be expected to publicize their interest rates when they want to mobilize capital in Vietnamese dong at their transaction points, according to the central bank regulation.
Credit organizations are not allowed to offer promotions in cash, interest rates or under any form not in line with the law and the circular, to attract depositors.
According to the State Bank, the circular is aimed to use interest rate and other monetary tools effectively and flexibly, to curb inflation, stabilize the economy and ensure social welfare.
The circular will also be used as a legal basis for dealing with credit organizations that violate the central bank regulations on capped interest rates in dong deposits.