Circular No. 02/2011/TT-NHNN stipulates the maximum deposit interest rate in Vietnamese dong for credit institutions and foreign bank branches, effective from the date of issuance. The interest rate shall not exceed 14% per annum for organizations (except for grassroots Credit Cooperatives) and 14.5% per annum for grassroots Credit Cooperatives.
Scope of application
Credit institutions and foreign bank branches (credit institutions), organizations and individuals raising funds through deposit accounts, deposit certificates, promissory notes, bills of exchange, and bonds.
Key points
- Credit institutions set the deposit interest rate in Vietnamese dong not exceeding 14% per annum (except for grassroots Credit Cooperatives) or 14.5% per annum (grassroots Credit Cooperatives).
- Interest rates must be converted to end-of-period payment methods corresponding to the maximum deposit interest rate.
- Credit institutions must publicly display the interest rates at fund-raising locations and strictly prohibit improper promotional activities.
- Banking supervisory agencies conduct inspections and audits on the implementation of the maximum deposit interest rate.
- This Circular takes effect from the date of issuance.
🌐 Social impact of this document
- Positive impact: Controlling inflation and stabilizing the macro-economy through strict management of deposit interest rates.
- Negative impact: It may limit the ability of credit institutions to attract funds if the interest rate is not competitive with the market.
❓ Frequently asked questions
What is the maximum deposit interest rate in Vietnamese dong?
The maximum deposit interest rate in Vietnamese dong for credit institutions and foreign bank branches does not exceed 14% per annum (except for grassroots Credit Cooperatives) or 14.5% per annum (grassroots Credit Cooperatives).
Can credit institutions apply interest payment methods other than end-of-period payments?
Yes, but they must be converted to end-of-period payment methods corresponding to the maximum deposit interest rate.
What penalties will credit institutions face if they violate the regulations on deposit interest rates?
Banking supervisory agencies will take measures within their authority to handle credit institutions that violate the regulations.
Can credit institutions carry out promotional activities to raise deposits?
No, credit institutions are strictly prohibited from carrying out promotional activities to raise deposits using money, interest rates, and other forms not in accordance with the law and this Circular.
When does this Circular take effect?
This Circular takes effect from the date of issuance.
Full text
CIRCULAR
Regulations on the maximum deposit interest rate in Vietnamese dong
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Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;
Pursuant to the Law on Credit Organizations dated June 16, 2010;
Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;
Implementing Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on key measures to control inflation, stabilize macroeconomic conditions, and ensure social welfare;
The State Bank of Vietnam stipulates the maximum deposit interest rate in Vietnamese dong for credit institutions and foreign bank branches (hereinafter referred to as credit institutions) as follows:
Article 1. Credit institutions shall set the deposit interest rate in Vietnamese dong (deposit interest rate; certificate of deposit interest rate, bill interest rate, promissory note interest rate, and bond interest rate) for organizations (excluding credit institutions) and individuals, including promotional expenses under all forms, not exceeding 14% per annum; specifically, People's Credit Funds may set the deposit interest rate in Vietnamese dong not exceeding 14.5% per annum. This maximum deposit interest rate applies to the end-of-period interest payment method; for other interest payment methods, they must be converted to the equivalent end-of-period interest payment method corresponding to the maximum deposit interest rate.
Article 2. Credit institutions shall publicly display the deposit interest rate in Vietnamese dong at their deposit collection locations (head office, branch, sub-branch, savings fund) in accordance with the regulations of the State Bank of Vietnam. Strictly prohibit credit institutions from conducting deposit promotion activities using money, interest rates, and other forms that do not comply with the provisions of the law and this Circular.
Article 3. Implementation
1. This Circular takes effect from the date of signature.
2. Banking inspection and supervision agencies and State Bank of Vietnam branches in provinces and centrally-administered cities shall conduct inspections, audits, and oversight of the implementation of the regulations on the maximum deposit interest rate in Vietnamese dong; apply measures within their authority to handle credit institutions violating the provisions of this Circular.
3. The Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Directors of State Bank of Vietnam branches in provinces and centrally-administered cities; Boards of Directors, General Managers (Directors) of credit institutions and related organizations and individuals are responsible for implementing this Circular./.
DEPUTY DIRECTOR
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