Circular No. 19/2012/TT-NHNN amends and supplements certain provisions of Circular No. 30/2011/TT-NHNN dated September 28, 2011, regarding the maximum interest rate for deposits in Vietnamese dong made by organizations and individuals at credit institutions and foreign bank branches.

CIRCULAR

Amending and supplementing certain provisions of Circular No. 30/2011/TT-NHNN dated September 28, 2011 on the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches.

 regulating the maximum interest rate for deposits in Vietnamese dong of organizations at credit institutions and foreign bank branches.

individuals at credit institutions, foreign bank branches.

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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 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;

Pursuant to Resolution No. 01/NQ-CP dated January 3, 2012 of the Government on key measures to guide and implement the socio-economic development plan and state budget estimate for 2012;

Article 1.

The Governor of the State Bank of Vietnam issues this Circular amending and supplementing certain provisions of Circular No. 30/2011/TT-NHNN dated September 28, 2011 regulating the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches,

Article 1. Amending and supplementing Article 1 of Circular No. 30/2011/TT-NHNN dated September 28, 2011 regulating the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches as follows:

"Article 1. Credit institutions and foreign bank branches shall determine the interest rate for deposits in Vietnamese dong of organizations (excluding credit institutions and foreign bank branches) and individuals including promotional expenses under all forms as follows:

1. The maximum interest rate applicable to demand deposits and term deposits under one month is 2% per annum.

2. The maximum interest rate applicable to term deposits from one month to less than twelve months is 9% per annum; specifically, People's Credit Funds may set the maximum interest rate for term deposits from one month to less than twelve months at 9.5% per annum.

3. The interest rate for term deposits of twelve months or longer shall be determined by credit institutions and foreign bank branches based on market supply and demand for capital.

4. Deposits include demand deposits, term deposits, savings deposits, deposit certificates, bills, promissory notes, bonds, and other deposit-taking forms of organizations (excluding credit institutions and foreign bank branches) and individuals as stipulated in Clause 13, Article 4 of the Law on Credit Institutions."

Article 2. Implementation

1. This Circular takes effect from June 11, 2012 and replaces Circular No. 17/2012/TT-NHNN dated May 25, 2012 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circular No. 30/2011/TT-NHNN dated September 28, 2011 regulating the maximum interest rate for deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches.

2. For term deposits in Vietnamese dong of organizations and individuals at credit institutions and foreign bank branches arising before the date this Circular takes effect, they shall be implemented until their maturity; upon maturity, if the organization or individual does not withdraw the deposit, the credit institution or foreign bank branch shall determine the interest rate for the deposit according to this Circular.

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 regulations on deposit interest rates in Vietnamese dong; apply measures within their authority to handle violations by credit institutions and foreign bank branches as stipulated in 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 of Vietnam branches in provinces and centrally-administered cities; Chairmen of Management Boards, Members of Management Boards, and General Directors (Directors) of credit institutions and foreign bank branches and related organizations and individuals are responsible for implementing this Circular./.