Two executives of Dong A Bank’s Tay Ninh branch have been fired for offering a deposit interest rate of 15.5% a year, exceeding the central bank’s ceiling of 14% a year.
On Thursday, the State Bank of Vietnam in the southern province of Tay Ninh dismissed Nguyen Thai Hau, who was the director of Dong A Bank in Tay Ninh and banned him from working in a managing position at this branch for the next three years.
Dong A Bank’s CEO Tran Phuong Binh told Nguoi Lao Dong Newspaper that on September 8, which was also the first day the deposit rate cap took effect, a director of another bank in Tay Ninh offered to deposit VND1 billion (US$50,000) at Dong A Bank in Tay Ninh with a condition: the interest rate must be 15.5% a year.
Hau agreed and the transaction was made at 11am. Yet, afterwards, it was this lender who reported to the central bank about the violation.
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.
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