SBV to inspect the USD mobilizing rates

By Minh An - Sep 15, 2017 | 07:08 AM GMT+7

TheLEADERViolators can be penalized under the disapproval of opening new branches, transaction offices and ATMs.

SBV to inspect the USD mobilizing rates
SBV inspects mobilizing rates in foreign currencies. Photo: Tan Thanh

The State Bank of Vietnam (SBV) announced that from 12 September, the SBV Banking Supervision Agency and the its branches in other provinces and cities has inspected and examined the compliance with SBV regulations on mobilizing rates in foreign currencies.

Banks violating the regulation on mobilizing rates are strictly enforced. Depending on the seriousness of the violation, the violators may not be considered and approved their proposal of opening new branches or transaction offices.

They may also not be approved to open new ATMs, representative offices, provide new services or launch new business operations.

The SBV Governor's statement also required credit institutions to strictly control credit growth rate in foreign currencies, foreign currency loan-to-deposit ratios. 

Banks, meanwhile, are required to ensure the balance between capital mobilization and lending, and to enhance risk control in foreign currency credit.

Credit institutions must comply with the regulation of interest rates. They are forbidden to use unfair technical measures to circumvent or exceed the ceiling rate in raising capital.

Credit institutions must check and detect violations of deposit rates; then actively report to the SBV.

The Governor of the SBV also requested provincial agencies to instruct credit institutions in their respective localities to strictly abide the SBV's regulations.