Deputy Governor Says It’s Impractical to Cap Lending Rates

26-Apr-2012 Intellasia | SBV | 7:05 AM Print This Post

It is impractical to place a lending rate ceiling for all lenders as banks have different risk appetites while risk levels of each customer group and sector also vary, said Nguyen Dong Tien, deputy Governor of the State Bank of Vietnam (SBV).

Besides, lending rate ceiling will cause inefficient capital allocation, Tien added.

Lending interest rate cap is just an administrative measure and will only be applied in special circumstances, said deputy prime minister Vu Van Ninh.

Though there is no rate ceiling, lending interest rates still move under controlled frame, Ninh said.

 


Category: Finance

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