HD Bank caught in breach of deposit ceiling

An HD Bank branch located at Ho Chi Minh City’s Tan Binh District was caught severely violating state regulation on deposit interest rate ceiling, the State Bank of Vietnam has said.

The central bank said this was a “deliberate violation” on the scale of the whole system of HD Bank, but refused to elaborate on how much the branch’s offered rate had exceeded the ceiling.

HD Bank’s Tan Binh branch’s director and relevant officials admitted to breaking the interest rate cap.

The central bank said it would continue to inspect other branches of HD Bank.

“This is a serious violation and an unhealthy competition,” it said.

“HD Bank will be subjected to strict sanctions.”

Nguyen Thai Hau, the director of Dong A Bank in Tay Ninh, was dismissed and barred from working in a managing position at this branch for the next three years.

Lam Thi Minh Anh, head of accounting of Dong A Bank in Tay Ninh, was also fired.

The central bank also banned Dong A Bank from opening new branches, transaction offices and ATM booths countrywide for a year starting from September 14.

The full story is available at Daily News.