Circular No. 14/2011/TT-NHNN stipulates the maximum deposit interest rate for US dollars by organizations and individuals at credit institutions.

CIRCULAR

Regulations on the maximum deposit interest rate in US dollars for organizations and individuals at credit institutions

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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 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. 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 focus on curbing inflation, stabilizing the macro-economy, and ensuring social welfare;

The State Bank of Vietnam stipulates the maximum deposit interest rate in US dollars for organizations and individuals at credit institutions and foreign bank branches (hereinafter referred to as credit institutions) as follows:

Article 1. Credit institutions shall set the maximum deposit interest rate in US dollars for resident organizations and individuals and non-resident organizations and individuals in the form of demand deposits, term deposits, savings deposits, issuance of deposit certificates, bills, promissory notes, bonds, and other deposit forms as prescribed in Clause 13, Article 4 of the Law on Credit Institutions.

1. The maximum deposit interest rate in US dollars applicable to resident organizations and non-resident organizations (excluding credit institutions) is 0.5% per annum.

2. The maximum deposit interest rate in US dollars applicable to resident individuals and non-resident individuals is 2.0% per annum.

3. The maximum deposit interest rate prescribed in this Article includes all promotional allowances in any form and 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 US dollars 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 promotional deposit activities in cash, 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 June 2, 2011. Circular No. 09/2011/TT-NHNN dated April 9, 2011 of the Governor of the State Bank of Vietnam on the maximum deposit interest rate in US dollars for organizations and individuals at credit institutions ceases to be effective.

2. For term deposits in US dollars of organizations and individuals at credit institutions arising before the date this Circular takes effect, they shall be implemented until the agreed term between the credit institution and the organization or individual.

3. Banking inspection and supervision agencies and State Bank of Vietnam branches in provinces and centrally-administered cities shall conduct inspections, audits, and supervision of the implementation of the regulations on the maximum deposit interest rate in US dollars; apply measures within their authority to handle credit institutions violating the provisions of this Circular.

4. The Director of the Office, Heads of the Monetary Policy Department and Heads of units under the State Bank of Vietnam, Governors of State Bank of Vietnam branches in provinces and centrally-administered cities; Chairmen of Management Boards and General Directors (Directors) of credit institutions and related organizations and individuals are responsible for implementing this Circular./.