Decision No. 420/QD-NHNN 2020 maximum interest of call rate applicable to VND deposits

DECISION

On maximum interest of call rate applicable to VND deposits at credit institutions, foreign bank branches for borrowers to meet the capital demand in service of a number of economic sectors and industries as prescribed in the Decree 39/2016/TT-NHNN dated December 12, 2016

THE GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

-    Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010 and the Law on amending a number of Articles of the Law on Credit Institutions No. 47/2010/QH12 dated November 20, 2017;

-    Pursuant to the Decree No. 16/2017/ND-CP dated 11 November 2017 of the Government, providing for functions, duties, authorities and organizational structure of the State Bank of Vietnam;

-    Pursuant to the Decree 39/2016/TT-NHNN dated December 12, 2016 of the Governor of the State Bank of Vietnam on prescribing lending transactions of credit institutions and/or foreign bank branches with customers;

-      Upon proposal of the Director of the Monetary Policy Department;

DECISION

Article 1.The maximum interest of call rate applicable to VND deposits as prescribed in Clause 2, Article 13 Decree 39/2016/TT-NHNN dated December 12, 2016 shall be:

1.   Credit institutions, foreign bank branches (except for people’s credit fund and micro financial institution) shall apply the maximum interest of call rate applicable to VND deposits of 5.5 % per annum.

2.   Peoples credit fund and micro financial institution shall apply the maximum interest of call rate applicable to VND deposits of 6,5% per annum.

Article 2.

1. This Decision takes effect from March 17, 2020 and replace the Decision No. 2416/QD-NHNN dated November 18, 2019 of the Governor of the State Bank of Vietnam on maximum interest of call rate applicable to VND deposits at credit institutions, foreign bank branches for to borrowers to meet the capital demand in service of a number of economic sectors and industries as prescribed in the Decree 39/2016/TT-NHNN dated December 12, 2016.

2. The interest rate applied to credit contracts, loan agreement documents signed before the effective date of this Decision shall continue to be implemented under the signed credit contracts and loan agreements in accordance with the law at the time of contract signing.

Article 3.Director of the State Bank’s Office, Director of Monetary Policy Department, Heads of units of the State Bank of Vietnam, General Managers of State Bank s branches in provinces, cities under the Central Government’s management; Chairman of Board of Directors, Board of Members and General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

For the Governor of the State Bank of Vietnam

The Deputy Governor

Nguyen Thi Hong