Circular No. 14/2011/TT-NHNN dated June 01, 2011 of the State Bank of Vietnam on regulating maximum deposit interest rate level by US dollars of organizations and individuals in credit institutions

THE STATE BANK OF VIETNAM

Circular No. 14/2011/TT-NHNN dated June 01, 2011 of the State Bank of Vietnam on regulating maximum deposit interest rate level by US dollars of organizations and individuals in 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 Institutions No. 47/2010/QH12 dated June 16, 2010;

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

Pursuant to the Decree No. 160/2006/ND-CP dated December 28, 2006 of the Government detailing the implementation of the Ordinance on foreign exchange;

Pursuant to the Decree No. 96/2008/ND-CP dated August 26, 2008 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam

On the implementation of the  Resolution No. 11/NQ-CP dated February 24, 2011 of the Government on major solutions for controlling inflation, stabilizing the macro economy and ensuring social security. The State Bank of Vietnam regulates the maximum deposit interest rate level by US dollars of organizations and individuals in credit institutions and branches of foreign banks (hereafter called credit institutions) as following:

Article 1.  Credit institutions fix the maximum deposit interest rate by US dollars of organizations and individuals who are residents and organizations and individuals who are non-residents under the forms of demand or term deposit, savings deposit, issuing deposit certificates, bills or treasury bills, bonds and other forms of receiving deposits on the regulations in the section 13, Article 4 of the Law on Credit Institutions:

1. The maximum deposit interest rate by US dollars applied to organizations who are residents and non-residents (except for credit institutions) is 0,5%/year.

2. The maximum deposit interest rate by US dollars applied to individuals who are residents and non-residents (except for credit institutions) is 2,0%/year.

3. The maximum deposit interest rate regulated in this Article including forms of promotional expenses and applied to the way of payment maturity interest; for other ways of interest payment, it must be conversed in the way of paying maturity interest correlative with the maximum deposit interest rate.

Article 2. Credit institutions may fix and shall publicize deposit interest rates by USD at the deposit places (Head offices, transaction offices, branches, transaction departments, saving funds) under regulations of the State Bank of Vietnam. Forbid strictly all credit institutions to make promotions on deposit by money, interest rate and other ways that are not right to the legal regulations and this Circular.

Article 3. Implementation organization

1. This Circular takes effect on June 02, 2011. The Circular No. 09/2011/TT-NHNN dated April 09, 2011 of the Governor of the State Bank of Vietnam regulating maximum deposit interest rate level by USD of organizations and individuals in credit institutions is invalid.

2. Term deposit interest rate by USD of organizations and individuals at credit institutions arising before the effective date of this Circular will be applied to the end of agreement time between credit institutions and organizations, individuals.

3. Bank investigation and control agencies, the State banks of central provinces and cities shall audit inspect and supervise the implementation of regulations on deposit interest rate level by USD; apply authorized methods of resolution for credit institutions that violate this Circular.

4. Chief Office, Director of Department of Monetary Policy and Heads of units under the State Bank of Vietnam; Directors of Branches of the State Bank in provinces, cities directly under the Central Government; Chairmen of management boards, General Directors (Directors) of credit institutions and relative individuals, organizations is responsibility for the implementation of this Circular.

FOR GOVERNOR

DEPUTY GOVERNOR

Nguyen Dong Tien