Vietnam central bank should review method of calculating interests on deposits

The State Bank of Vietnam, the country’s central bank, is suggested to review the methodology of calculating interests on deposits to ensure the consistency in the banking system.

The State Bank of Vietnam, the country’s central bank, is suggested to review the methodology of calculating interests on deposits to ensure the consistency in the banking system, the local state-run online newspaper Tuoi Tre (“Youth”) quoted Duong Thu Huong, General Secretary of Vietnam Banks Association, as saying.

The method to calculate interests on deposits was standardized in Decision No. 652/2001/QD-NHNN dated May 17, 2001, said Nguyen Ngoc Thang, deputy director of the SBV-Ho Chi Minh City, clarifying that deposit interests are calculated on the basis of 360 days/year, 12 months/year or 30 days/month with no distinction between months of 28, 29, 30 or 31 days.

However, banks are reported not to consistently apply the interest calculation method specified in Decision 652 resulting in different interest amounts for deposits with the same value, terms and interest rates.

An unnamed customer in Ho Chi Minh City received different interests of VND12,054,867, VND11,890,411, and VND11,666,667 on 1-month term deposit of VND1 billion at HDBank, MB and Vietbank, respectively, the newspaper Tuoi Tre cited as an example.

Source Sophie/ News Writer/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Oct 13 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry