Circular No. 23/2013/TT-NHNN on the requirement for state credit institutions to maintain deposit balances with the Social Policy Bank

CIRCULAR

Article 24stipulates the requirement for state credit institutions to maintain balances of deposits

with the social policy bank

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Pursuant to the Law on the State Bank of Vietnam No.No. Pursuant to Law 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 on the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;June 2024;Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets;

The Governor of the State Bank of Vietnam issues this Circular stipulating the requirement for state credit institutions to maintain balances of deposits with the Social Policy BanksThis Circular stipulates the requirement for state credit institutions to maintain balances of deposits with the Social Policy Bank at 2% of the balance of mobilized sources of funds as specified in Clause 2, Article 8 of Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets.on 1. State credit institutions shall maintain deposits with the Social Policy Bank, including state-owned commercial banks and joint-stock commercial banks owned by the state with more than 50% of charter capital: Vietnam Agricultural and Rural Development Bank; Vietnam Joint Stock Commercial Bank for Industry and Trade; Vietnam Joint Stock Commercial Bank for Foreign Trade; Vietnam Joint Stock Commercial Bank for Investment and Development; Vietnam Joint Stock Commercial Bank for Southern Housing Development.No.This Decision takes effect from March 1, 2020.

This Circular guides on the functions, duties, powers, organizational structure, operational regulations, and relationships between Management Boards and heads of public service units and superior management agencies; standards and conditions for appointment and removal of members of Management Boards, including Chairpersons of Management Boards in public service units.in1. Annually, state credit institutions are responsible for maintaining balances of deposits with the Social Policy Bank at 2% of the balance of mobilized sources of funds denominated in Vietnamese dong as of December 31 of the previous year.;

2. The balance of mobilized sources of funds denominated in Vietnamese dong of state credit institutions as of December 31 of the previous year includes: demand deposits, term deposits, savings deposits, issuance of deposit certificates, bills, promissory notes, other forms of receiving deposits from individuals and organizations (excluding credit institutions and foreign bank branches) as specified in Clause 13, Article 4 of the Law on Credit Institutions; issuance of bonds to mobilize funds from individuals and organizations (excluding credit institutions and foreign bank branches).No. 3. Handling cases of supplementing or reducing balances of deposits of state credit institutions with the Social Policy Bank as follows:âa) In the case where the balance of deposits required to be maintained in the following year is greater than the balance of deposits of the previous year, then state credit institutions must supplement the balance of deposits by the amount of the excess difference.,

Article 1. Scope of Regulation

b) In the case where the balance of deposits required to be maintained in the following year is less than the balance of deposits of the previous year, then state credit institutions may reduce the deposit balance by the amount of the smaller difference or continue to maintain the balance of deposits of the previous year.

Article 2. Applicability

Article 4. Interest rate on deposits denominated in Vietnamese dong of state credit institutions at the Social Policy Bank

2. Social Policy Bank.

Article 3. Deposit Balances of State-owned Credit Institutions Maintained at the Social Policy Bank

1. The interest rate on deposits denominated in Vietnamese dong is determined as follows:

Interest rate on deposits denominated in Vietnamese dong of state credit institutions at the Social Policy Bank (%/year) 

Average interest rate on mobilizing funds denominated in Vietnamese dong (%/year)

Mobilization fee (%/year)

b) Is the average interest rate on mobilizing funds denominated in Vietnamese dong as of December 31 of the previous year of state credit institutions, calculated according to the weighted average interest rate method of various types of mobilized sources of funds as specified in Clause 2, Article 3 of this Circular.

c) Is the average cost of mobilizing funds agreed upon between the Social Policy Bank and state credit institutions but not exceeding 1.35%/year.

2. In the event that the interest rate on mobilizing funds of state credit institutions fluctuates significantly compared to the interest rate announced previously, the State Bank of Vietnam will consider adjusting the average interest rate on mobilizing funds denominated in Vietnamese dong based on the proposal of state credit institutions or the Social Policy Bank and notify such adjustment to state credit institutions and the Social Policy Bank as the basis for determining the interest rate on deposits for the remainder of the year. The adjusted average interest rate on mobilizing funds denominated in Vietnamese dong is the average interest rate on mobilizing funds denominated in Vietnamese dong of state credit institutions at the time of adjustment, calculated according to the weighted average interest rate method of various types of mobilized sources of funds as specified in Clause 2, Article 3 of this Circular. For the year 2013, based on the proposal of state credit institutions or the Social Policy Bank, the State Bank of Vietnam will determine and announce the average interest rate on mobilizing funds denominated in Vietnamese dong to serve as the basis for determining the interest rate on deposits of state credit institutions at the Social Policy Bank from July 1, 2013 to December 31, 2013.

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3. Before January 15 each year, state credit institutions send a statement of the balance of mobilized sources of funds and interest rates for each term denominated in Vietnamese dong according to Appendix 01 attached to this Circular to the State Bank of Vietnam (Department of Monetary Policy). Before January 31 each year, the State Bank of Vietnam (Department of Monetary Policy) calculates and announces the average interest rate on mobilizing funds denominated in Vietnamese dong of state credit institutions as of December 31 of the previous year to state credit institutions and the Social Policy Bank to serve as the basis for determining the interest rate on deposits for the year.

c) Is the average cost of capital mobilization agreed upon between the Vietnam Policy Bank and state credit institutions, but not exceeding 1.35% per annum.

2. In cases where the interest rate on capital mobilization of state credit institutions significantly fluctuates compared to the interest rate at the time of the previous announcement, the State Bank of Vietnam shall consider adjusting the average interest rate on VND-denominated capital mobilization based on the proposal of state credit institutions or the Vietnam Policy Bank, and notify such adjustment to state credit institutions and the Vietnam Policy Bank as the basis for determining deposit interest rates for the remainder of the year. The adjusted average interest rate on VND-denominated capital mobilization is the weighted average interest rate of VND-denominated capital mobilization interest rates of state credit institutions at the time of adjustment, calculated according to the method prescribed in Clause 2 of Article 3 of this Circular. For the year 2013, based on the proposal of state credit institutions or the Vietnam Policy Bank, the State Bank of Vietnam will determine and announce the average interest rate on VND-denominated capital mobilization as the basis for determining deposit interest rates of state credit institutions at the Vietnam Policy Bank from July 1, 2013 to December 31, 2013.

3. The interest payment period for deposits is agreed upon between the Vietnam Policy Bank and state credit institutions in accordance with the regulations of the State Bank of Vietnam regarding the calculation and payment of interest.

Article 5. Procedures and formalities for depositing funds at the Social Policy Bank

1. State credit institutions open term deposit accounts at the headquarters of the Vietnam Policy Bank.

2. In 2013, state credit institutions continue to deposit funds at the Vietnam Policy Bank in accordance with contracts and appendices signed with the Vietnam Policy Bank. For subsequent years, if the deposit balance and interest rates change, the parties shall agree to supplement through additional appendices to the deposit contract.

3. Before January 15 each year, state credit institutions submit a statement of the balance of capital mobilized and the interest rate on capital mobilization for each term in VND, attached as Appendix 01 to this Circular, to the State Bank of Vietnam (Monetary Policy Department). By January 31 each year, the State Bank of Vietnam (Monetary Policy Department) calculates and announces the average interest rate on VND-denominated capital mobilization of state credit institutions as of December 31 of the previous year to state credit institutions and the Vietnam Policy Bank as the basis for determining deposit interest rates for the year.

4. Before January 15 each year, state credit organizations shall submit the table determining the deposit balance for the year according to Appendix 02 attached hereto to the Social Policy Bank and shall be responsible for the accuracy of the data. By no later than February 10 each year, state credit organizations and the Social Policy Bank must complete the supplementary appendices to the deposit contracts and adjust the deposit balances in accordance with the provisions of this Circular.

Article 6. Implementation Provisions

1. This Circular takes effect from January 2, 2014. Circular No. 04/2003/TT-NHNN dated February 24, 2003, guiding state credit organizations to maintain deposit balances at the Social Policy Bank, issued by the Governor of the State Bank of Vietnam, ceases to be effective.

2. The Director of the Office, the Head of the Monetary Policy Department, and the Heads of units under the State Bank of Vietnam, the Governors of the State Bank of Vietnam branches in provinces and centrally-administered cities, the Chairmen of the Boards of Directors, the Chairmen of the Boards of Members, and the General Directors (Directors) of state credit organizations and the Social Policy Bank are responsible for implementing this Circular.