Vietnam banks dispute compulsory reserve ratios

Commercial banks have criticised the central bank's increase of the compulsory ratio of deposit reserves from this month from 8% to 12% for call and less than 12-month deposits in the dollar. The new requirement would make big inroads into their profits as most greenback deposits ranged from six to 12 months, they said.

"We can neither lower the interest on foreign-currency deposits nor raise our lending rates," they said, adding the extra 50% would make it that much more expensive to raise do