Decision No. 210/2005/QD-NHNN adjusts the ratio of VND deposit mobilization for foreign bank branches of European Union countries operating in Vietnam, allowing them to accept deposits from Vietnamese legal entities and individuals up to the maximum credit limit prescribed.
Scope of application
Foreign bank branches of European Union countries operating in Vietnam.
Key points
- EU foreign bank branches are permitted to accept deposits from Vietnamese legal entities with a maximum credit limit equal to 400% of the capital granted.
- EU foreign bank branches are permitted to accept deposits from Vietnamese individuals with a maximum credit limit equal to 350% of the capital granted.
🌐 Social impact of this document
- Positive impact: Enhances the ability of foreign bank branches to mobilize funds, supporting local economic development.
- Negative impact: May lead to credit risk if not managed strictly.
❓ Frequently asked questions
What is the maximum credit limit for EU foreign bank branches to accept deposits from Vietnamese legal entities and individuals?
EU foreign bank branches are permitted to accept deposits from Vietnamese legal entities with a maximum credit limit equal to 400% of the capital granted, and from Vietnamese individuals with a maximum credit limit equal to 350% of the capital granted.
When does this decision take effect?
This decision takes effect fifteen days after its publication in the Official Gazette, replacing Decision No. 327/2004/QD-NHNN.
Which entities are responsible for implementing this decision?
The Director of the State Bank of Vietnam's Office, the Head of the Department of Banks and Non-Bank Credit Institutions, the Heads of relevant units under the State Bank of Vietnam, and the General Managers (Directors) of foreign bank branches of EU countries operating in Vietnam are responsible for implementing this decision.
For which foreign banks does this decision apply?
This decision applies only to foreign bank branches of European Union (EU) countries operating in Vietnam.
Has the ratio of VND deposit mobilization for foreign banks changed compared to before?
This decision adjusts the ratio of VND deposit mobilization for EU foreign bank branches, increasing the maximum credit limit from 300% of the granted capital (as per Decision No. 327/2004/QD-NHNN) to 400% and 350% for Vietnamese legal entities and individuals respectively.
Full text
DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM
On Adjusting the Ratio of VND Deposit Mobilization for Branches of Foreign Banks
from European Union Countries Operating in Vietnam
GOVERNOR OF THE STATE BANK OF VIETNAM
Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003;
Pursuant to the Law on Credit Organizations No. 02/1997/QH10 dated December 12, 1997 and the Law Amending and Supplementing Certain Articles of the Law on Credit Organizations No. 20/2004/QH11 dated June 15, 2004;
Pursuant to Decree No. 86/2002/NĐ-CP dated November 5, 2002 of the Government stipulating the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;
Pursuant to the Government Decree No. 13/1999/NĐ-CP dated March 17, 1999 on the organization and operation of foreign credit organizations and representative offices of foreign credit organizations in Vietnam;
Implementing the guidance of the Prime Minister in Official Letter No. 75/CP-QHQT dated December 16, 2004;
At the proposal of the Director of the Department of Banks and Non-Bank Financial Institutions,
DECISION:
Article 1. Branches of foreign banks from European Union (EU) countries operating in Vietnam are permitted to accept VND deposits from Vietnamese legal entities with which the bank has no credit relationship up to a maximum of 400% of the authorized capital, and from Vietnamese individuals with whom the bank has no credit relationship up to a maximum of 350% of the authorized capital.
Article 2. This Decision takes effect fifteen days after its publication in the Official Gazette and replaces Decision No. 327/2004/QĐ-NHNN dated April 1, 2004.
Article 3. The Heads of the State Bank of Vietnam’s Office, the Director of the Department of Banks and Non-Bank Financial Institutions, the Heads of relevant units under the State Bank of Vietnam, and the General Directors (Directors) of branches of foreign banks from EU countries operating in Vietnam are responsible for implementing this Decision.
DEPUTY DIRECTOR
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