Exceeding the interest rate ceiling: Depositors are also punished

If a credit institution violates the interest rate ceiling, if people participate, they are also accomplices, and according to the law, accomplices must also be punished.

90% of the interbank lending system is normal. Illustrative photo

"Therefore, we ask people not to get involved in these violations," the Governor said.

In an online exchange with the people at the Government Portal on the morning of January 12, Governor of the State Bank of Vietnam Nguyen Van Binh affirmed that any violation of the State Bank's regulations, including the interest rate ceiling, is a violation of the law and an unfair competitive measure. If people have specific evidence of violations, please send this evidence to the State Bank of Vietnam for strict handling.

Recently, the State Bank and the police have stepped up inspection, supervision and strict handling of credit institutions that violate the law. We hope that if people discover any violations, they will immediately report them to the State Bank for handling.

"I would also like to add that if a credit institution violates, and people participate, they are also accomplices, and according to the law, accomplices must also be punished. Therefore, we recommend that people do not assist in these violations," the Governor affirmed.

According to the Governor, if it is difficult to borrow capital on the interbank system, it is not correct, it is just a rumor.

Currently, 90% of the interbank system lends normally, only about 10% of credit institutions are in difficulty or have unhealthy operations, making it difficult to borrow.

"If a friend has good math skills and good ethics, it is easier for us to lend money to a friend who is definitely unable to repay the debt and borrows only to spend lavishly. Therefore, I would like to confirm that currently about 10% of credit institutions - 10% in terms of banking market share - are having financial difficulties and have difficulty borrowing in the interbank market. Therefore, when lending to other banks, they require collateral. This situation requires the State Bank to deal with those unhealthy institutions to restore health to the market," the Governor said.

Regarding the issue of the SCB merger, the Governor said that after the merger, SCB has changed positively. Before the merger, at the 3 organizations, people came to withdraw money a lot, the cash inflow was smaller than the cash outflow.

To ensure liquidity and payment capacity for the people, all three have to borrow recapitalization from the State Bank. Up to now, the cash flow has basically been balanced, the cash inflow has at times been higher than the cash outflow. Thus, there are conditions for SCB to stabilize again. Currently, SCB has many solutions such as coordinating with domestic and international investors to invest in projects they have previously lent to create liquidity for the system.

According to Infonet