The central bank said in a document that local banks and foreign bank branches have competed for deposits by offering higher interest rates and launching new promotion programmes to woo clients. To make sure banks comply with the central bank’s regulations and maintain the stability of the currency markets, SBV governor Nguyen Van Binh ordered banks to observe the rules on deposit rates. The central bank requires credit institutions not to resort to technical measures to indirectly make their deposit rates higher than the permissible ceilings, thus triggering unhealthy competition. In the first two months of this year, 30 commercial banks have adjusted their deposit rates.
