The ceiling interest rate of commercial banks will be increased from 12% to 15% a year, from this Sunday.

A banking staff directs a customer about lending procedures. Banks agree that ceiling interest rates will not be higher than 15% percent a year (Photo: SGGP)

The decision came from a meeting between the State Bank of Vietnam in Ho Chi Minh City and the Vietnam Banking Association, in collaboration with the commercial banks on Saturday.

A day earlier, the State Bank in Hanoi chaired a meeting, in which 12 northern commercial banks signed a commitment, agreeing that their maximum interest rate would be 14% a year.

In case, the banks give their customers any promotional programs (cash or any other gifts); the real interest rate would not surpass 15% a year. Any bank violating this regulation will suffer severe punishment from the authorized organizations.

Because of the rocketing interests during the last few days, the State Bank intervened to stop any more increases. At one stage, the interest rate was 17% to 18% a year in some commercial banks. However, now the ceiling is lower. In HCMC, it remains at 15.5% to 16.5% a year.

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Source: SGGP