Circular No. 06/2014/TT-NHNN on the maximum interest rate for dollar deposits of organizations and individuals at credit institutions

✦ Tóm lược thông minh

Circular No. 06/2014/TT-NHNN stipulates the maximum interest rate for dollar deposits of organizations and individuals at credit institutions to ensure stability and fairness in the financial market.

Đối tượng áp dụng

Credit institutions, foreign bank branches; organizations (excluding credit institutions); individuals

Các điểm cốt lõi

Credit institutions shall not apply an interest rate for dollar deposits exceeding the maximum interest rate determined by the Governor of the State Bank of Vietnam (Article 1).
The maximum interest rate includes all promotional expenses under any form and applies to both end-of-term interest payment methods and other methods convertible to end-of-term interest payment methods (Article 2).
Credit institutions must publicly display the interest rate for dollar deposits at the deposit acceptance location and shall not conduct any promotional activities that do not comply with the law (Article 3).
Credit institutions and foreign bank branches must comply with the regulations on the maximum interest rate when continuing to apply to term deposits generated before this Circular takes effect (Article 4.2).
The State Bank of Vietnam and banking inspection agencies will conduct inspections and audits of the implementation of the regulations on the maximum interest rate for dollar deposits; and apply sanctions within their authority (Article 4.3).

🌐 Tác động xã hội từ văn bản này

Enhance management and stabilize the financial market, prevent unfair competition in deposit interest rates.
Reduce risks for depositors due to restrictions on non-compliant promotional activities.
Credit institutions may face difficulties in attracting funds from customers when they have to comply with the maximum interest rate.

❓ Câu hỏi thường gặp

What is the maximum interest rate for dollar deposits of individuals and organizations?

Credit institutions shall not apply an interest rate exceeding the maximum interest rate determined by the Governor of the State Bank of Vietnam.

Which types of deposits are subject to the maximum interest rate?

Including demand deposits, term deposits, savings accounts, certificates of deposit, bills, promissory notes, and bonds (Article 1).

Are promotional activities allowed when accepting dollar deposits?

Strictly prohibited from conducting any promotional activities that do not comply with the law.

Toàn văn

CIRCULAR

Specifies the maximum interest rate for dollar deposits of organizations and individuals at credit institutions.

At credit institutions

__________________

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Foreign Exchange Law No. 28/2005/PL-UBTVQH11 dated December 13, 2005;

Pursuant to Ordinance No. 06/2013/UBTVQH13 dated March 18, 2013, amending and supplementing certain articles of Foreign Exchange Ordinance No. 28/2005/PL-UBTVQH11 dated December 13, 2005;

Pursuant to Decree No. 160/2006/NĐ-CP dated December 28, 2006 of the Government detailing the implementation of the Foreign Exchange Ordinance;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

Article 1.

The Governor of the State Bank of Vietnam issues this Circular to specify the maximum interest rate for dollar deposits of organizations and individuals at credit institutions.

Article 1.

1. Credit institutions and foreign bank branches (hereinafter referred to as credit institutions) shall apply the interest rate on dollar deposits not exceeding the maximum interest rate determined by the Governor of the State Bank of Vietnam for each period for:

a) Deposits of organizations (excluding credit institutions).

b) Individual deposits.

2. Deposits include demand deposits, term deposits, savings deposits, deposit certificates, bills, treasury bills, bonds, and other forms of deposits of organizations (excluding credit institutions) and individuals as stipulated in Clause 13, Article 4 of the Law on Credit Institutions.

Article 2. The maximum interest rate for deposits specified in this Circular includes all promotional allowances in any form, applicable to end-of-period interest payment methods and other interest payment methods converted to end-of-period interest payment methods.

Article 3. Credit institutions must publicly display the interest rate on dollar deposits at locations where deposits are accepted according to the regulations of the State Bank of Vietnam. Strictly prohibited are any promotional activities (in cash, interest rates, and other forms) by credit institutions when accepting deposits that do not comply with the provisions of the law and this Circular.

Article 4. Implementation

1. This Circular takes effect from March 18, 2014, and replaces Circular No. 14/2013/TT-NHNN dated June 27, 2013, issued by the Governor of the State Bank of Vietnam specifying the maximum interest rate for dollar deposits of organizations and individuals at credit institutions and foreign bank branches.

2. For term dollar deposits of organizations and individuals at credit institutions arising before the date this Circular takes effect, they shall be implemented until their maturity; if the agreed maturity period has expired and the organization or individual does not withdraw the deposit, the credit institution shall apply the interest rate on deposits as prescribed in this Circular.

3. Banking inspection and supervision agencies and State Bank branches in provinces and centrally administered cities shall conduct inspections, audits, and supervision of the implementation of the regulations on the maximum interest rate for dollar deposits; apply measures within their authority to handle violations by credit institutions under this Circular.

4. The Director of the Office, Heads of the Monetary Policy Department and other units under the State Bank of Vietnam, Governors of State Bank branches in provinces and centrally administered cities; Chairmen of the Board of Directors, Chairmen of the Board of Members, and General Managers (Directors) of credit institutions and foreign bank branches are responsible for organizing the implementation of this Circular./.