On Apr. 26, VIE CB drafted circulars on application of interest rates.
VIE CB issued draft circular regulating application of interest rates to deposits in VND of organizations and individuals at credit institutions and foreign bank branches.
Also issued a draft circular regulating application of interest rates to deposits in USD.
Follows Feb. 2024 VIE PRL approved the draft Law on credit institutions, see #201687.
Key Points
Draft circulars contain 5 articles, including scope of regulation; subjects of application; interest rate; implementation provisions; and implementation organization.
Regulate the application of interest rates on deposits in VND/USD of organizations.
Effectiveness
The comment period was not specified.
Sep. 2024 Promulgation
On Sep. 30, 2024, VIE CB issued circulars regulate interest rates for deposits in VND, USD; applies to organizations (excluding credit institutions) and individual depositors.
Interest rates for deposits under 1 month, from 1 to less than 6 months are capped by VIE CB; interest rates for deposits of six months or more are determined by market.
Credit institutions must publicly list the interest rates for deposits in VND and USD at locations where they legally operate, and also publish them on their websites.
Existing deposit agreements will continue as per their original terms until expiration; after term ends, the new rules will apply if customers do not withdraw their deposits.
The circulars are effective from Nov. 20, 2024.
Document dated Sep. 30, 2024, received from VIE CB Oct. 4, summarized on Oct. 7.
Oct. 2024 Press Release
On Oct. 3, 2024, VIE CB issued press releases regarding the issuance of circulars48/2024/TT-NHNN and 46/2024/TT-NHNN detailed above, publicizing key provisions.
Oct. 7, 2024 VIE GVT Publication
On Oct. 7, 2024, VIE GVT published circular 46/2024/TT-NHNN of Sep. 30, 2024 and detailed above, highlighting that it comes into effect on Nov. 20, 2024.
