The State Bank of Vietnam recently issued an important notice implementing new regulations on USD deposit interest rates. This policy adjustment will officially take effect from November 20, 2024, and is expected to have a profound impact on Vietnam’s financial market.
According to Notice No. 46 (46/2024/TT-NHNN) issued by the State Bank of Vietnam, the new regulations will apply to various financial institutions operating in Vietnam, including commercial banks, cooperative banks, finance companies, specialized finance companies, and foreign bank branches. This regulation also covers organizations (excluding credit institutions themselves) and individuals who deposit money in these credit institutions.
The core content of the new regulation is that the USD deposit interest rates of various credit institutions must not exceed the maximum interest rate level determined by the Governor of the State Bank of Vietnam for each period. This regulation sets interest rate caps for both organizational and individual deposits.
To ensure the transparency and enforceability of the policy, the notice requires all credit institutions to publicly list USD deposit interest rates at legitimate transaction locations within their operating network. In addition, institutions with official websites are required to publish this information online. It is worth noting that the notice explicitly prohibits credit institutions from launching any preferential activities that do not comply with legal regulations when accepting deposits.
For USD deposit interest rate agreements signed before the new regulations take effect, the notice stipulates that credit institutions and customers can continue to execute the original agreement until the term ends. However, if the customer does not withdraw the deposit after the agreed term expires, the credit institution will implement the deposit interest rate as stipulated in the new notice.
The introduction of this new policy reflects the State Bank of Vietnam’s further standardized management of USD deposit interest rates. By setting interest rate caps, the central bank aims to maintain financial market stability, prevent excessively high interest rates caused by over-competition, and provide depositors with a more transparent and predictable interest rate environment.
Key points:
- The State Bank of Vietnam issues new regulations, implementing management of maximum USD deposit interest rates from November 20, 2024.
- The new regulations apply to various financial institutions in Vietnam and their customers.
- USD deposit interest rates must not exceed the limit set by the Governor of the State Bank of Vietnam.
- Financial institutions need to publicly and transparently announce USD deposit interest rates.
- Promotional deposit activities that do not comply with regulations are prohibited.
- Existing deposit agreements can continue to be executed until expiration, after which they must follow the new regulations.
- The new policy aims to standardize the market, maintain financial stability, and may affect depositors’ returns and financial institutions’ strategies.
