The State Bank requires stable deposit interest rates

The State Bank has just requested strict implementation of the Governor’s direction in Directive 01, ensuring macroeconomic stability, controlling inflation and supporting sustainable growth.

“Banks must focus on implementing solutions to stabilize interest rates, comply with regulations on posting deposit interest rates and interest rate ceilings. At the same time, banks must strengthen internal inspection and strictly handle violations related to interest rates,” the State Bank announced.

The regulatory agency also requires credit institutions to continue to publicly announce average lending interest rates, the difference between deposit and lending interest rates, as well as interest rates of credit programs on their websites so that people and businesses can conveniently access capital.

In addition, banks must balance capital sources – capital use, ensure liquidity and solvency, and not disturb the market interest rate level. Credit capital flows are oriented to production and business, priority areas and growth drivers, while ensuring the safety of system operations.

Regional State Banks must closely monitor developments in deposit and lending interest rates. These units need to strengthen inspections, periodic or irregular inspections of compliance with interest rate regulations, promptly detect and handle violations, and report issues beyond their authority to the Governor.

The State Bank said it will continue to closely monitor developments in deposit and loan interest rates and the announcement of interest rates by credit institutions, while strengthening inspection and supervision of the implementation of interest rate instructions.

The above request was made in the context that in recent months, the race for deposit interest rates in the market has “heated up”. At many banks, actual interest rates are 1-2% higher than listed.

Many banks offer savings interest rates of up to 8-9% per year for deposits ranging from a few dozen to several hundred million VND for deposits of 6 months or more. For deposit terms of less than 6 months, deposit interest rates are controlled at a ceiling of 4.75%.