Vietnam's central bank on Wednesday ordered commercial lenders to report on their progress in lowering deposit and lending interest rates, Thoi Bao Ngan Hang, a publication of the central bank, reported, citing Governor Nguyen Van Binh.
Commercial lenders must send the central bank copies of their internal instructions on reducing deposit and lending interest rates for both dong and foreign currencies, Thoi Bao said.
Any lenders found to have violated the central bank's instruction in lowering rates will be "strictly" punished, Thoi Bao said. The central bank encouraged lenders to report any violations by other banks, it said.
Twelve Vietnamese banks reached an agreement late August to lower their lending interest rates to 17-19 percent, supporting a call from the central bank. In return, the State Bank of Vietnam promised to be more flexible with banking policies and help commercial banks increase their liquidity.