>> Vietnam caps deposit interest rates at 14%

Commercial banks and financial institutions have been asked to focus their resources on lending to production and business activities.

Governor of the State Bank of Vietnam (SBV), the country’s central bank, requested on March 13 that capital sources should go to production and business, agriculture and rural development as well as small-and-medium enterprises (SMEs).

This means that there will be less capital lending going towards other sectors, he said.

When all required documents are received, financial institutions must calculate, and make public, the maximum time it will take for the loan appraisal. In case of loan denials, these institutions must make a written statement as to the reasons for not lending.

On March 3, SBV 3 issued a circular to cap interest rates for deposits in VND at 14% per year, for commercial banks. The move has resulted in a sharp increase in the interest rates of non-term deposits.