Central bank orders inquiry into credit institutions

The State Bank of Vietnam has ordered its Hanoi and Ho Chi Minh City branches to investigate and punish credit organizations that have violated regulations related to lending activities.

It was reported that some commercial banks recently charged fees, including fees for asset management and financial advice, which pushed actual lending interest rates to 15-16 percent annually, 3-4 percent higher than allowed by the central bank.

Moreover, this contravened a regulation which ordered credit institutions not to charge any fees related to lending activities.

The State Bank on January 11 also ordered 10 commercial banks to report their activities related to mobilizing and using gold and dong with values secured by gold prices.

It ordered banks to assess the impact of the forthcoming closure of domestic gold exchanges and risks and measures to control risks regarding the mobilization and use of gold and dong capital with values secured by gold prices.

By Binh Minh – Translated by Thuy Doan

Other news