One more bank found to breach deposit ceiling

A branch in Ho Chi Minh City’s Tan Binh District of HD Bank was on Tuesday found to severely violate state regulation on deposit interest rate ceiling, the State Bank of Vietnam has said.
The central bank said this was a “deliberate violation” on the scale of the whole system of HD Bank, but refused to elaborate on how much the branch’s offered rate had exceeded the ceiling.

HD Bank’s Tan Binh branch’s director and relevant officials admitted to breaking the interest rate cap.

The central bank said it would continue to inspect other branches of HD Bank.

“This is a serious violation and an unhealthy competition,” it said.

“HD Bank will be subjected to strict sanctions.”

On September 7 the central bank issued a directive, ordering banks to strictly follow the deposit rate regulation by keeping their deposit rate under 14 percent a year.

The fiat also stipulates the strictest penalty for violators such as dismissing their chief executives and banning them from expanding their network.

Earlier on September 15, the central bank also found a similar violation at Dong A Bank’s branch in the southern province of Tay Ninh that offered a deposit interest rate of 15.5 percent a year.

Nguyen Thai Hau, the director of Dong A Bank in Tay Ninh, was dismissed and barred from working in a managing position at this branch for the next three years.

Lam Thi Minh Anh, head of accounting of Dong A Bank in Tay Ninh, was also fired.

The central bank also banned Dong A Bank from opening new branches, transaction offices and ATM booths countrywide for a year starting from September 14.

Tuoi Tre

Tags: HDBank, Vietnam banking industry, Vietnam finance, Vietnam financial