VIETNAMESE BANKS AGREE ON 11 PC CAP FOR DEPOSIT INTEREST

HANOI, Mar 24, 2008 (AsiaPulse via COMTEX) -- NO MATCHES FOUND. | news | PowerRating | PR Charts -- Credit organisations agreed to keep deposit interest rates not exceeding 11 percent a year, at a meeting of the Vietnam Bank Association (VNBA) in Hanoi on March 22.

However, the interest rate cap needs to receive approval from credit organisations in the southern region at a meeting slated for March 24 in Ho Chi Minh City, in order to be effective.

The new ceiling interest rate for deposits in VN dong is expected to be applied by VNBA members nationwide early next month.

VNBA General Secretary Duong Thu Huong said that banks have strictly adhered to the State Bank Governor's Official Dispatch 02 on the ceiling interest rate of 12 percent a year.

According to Huong, by March 17, the imbalance of usable capital in a number of credit organisations has been overcome.

The banking system currently has a total usable capital of more than 14,000 billion VND (US$885 million).

(VNA)

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